Credit: RSPO,Jonathan Perugia

IMPACT REPORT 2022

MOVING
AHEAD

Roundtable on Sustainable
Palm Oil
Unit 13A-1, Level 13A,
Menara Etiqa,
No 3, Jalan Bangsar Utama 1,
59000 Kuala Lumpur,
Malaysia
Other Offices
Jakarta, Indonesia
London, United Kingdom
Beijing, China
Bogota, Colombia
New York, USA
Zoetermeer, Netherlands

RSPO is an international
non-profit organisation
formed in 2004 with theobjective to promote
the growth and use ofsustainable oil palm
products throughcredible global standards
and engagement of
stakeholders.
www.rspo.org

IMPACTREPORT 2022

rspo@rspo.org

www.rspo.org

AboutThis Report
In the two years since the previous Roundtable on
Sustainable Palm Oil (RSPO) Impact Report was
published, much has changed. The coronavirus
disease (COVID-19) triggered a global pandemic,
shutting down borders and disrupting lives. In
March 2020, there were fears that RSPO’s journey oftransforming markets to make sustainable palm oil
the norm would be interrupted, or even regress.
It didn’t. Despite worldwide turmoil, RSPO
continues to grow in almost all aspects. In thisImpact Report, we are pleased to document
sustained growth in membership and certification,encouraging progress in certified production andconsumption, expanding reach in markets and tosmallholder farmers, and most importantly, tangible
positive impacts. Through the commitment andambition of over 5,200 members, sustainability inthe palm oil industry is now entrenched through
RSPO. But we cannot stop here. We must continue
to move ahead as an organisation and an industry
to collectively address challenges of the future. Our
progress since 2004 shows that change is possible,
and we will continue our efforts to encouragechange and transform markets.
The RSPO Impact Report is a bi-annual publication
narrating the impacts generated by RSPO and ourmembers through certification and other RSPO
systems and procedures. The report serves as aplatform to communicate our achievements in termsof People, Planet and Prosperity to stakeholders
and to the public. This report has been preparedin accordance with Target 12.6 of the Sustainable
Development Goals, to integrate sustainability
information as part of reporting cycles. We do this asa standard-setting organisation and as a membershipbody representing our members, because theimpacts they have achieved through their individualsustainability commitments are the collective impacts
of RSPO.
Reporting is on a calendar year basis, from 1 January
to 31 December of respective years. Previous Impact
Reports were reported on a financial year basis,from 1 July to 30 June; all data included in this reporthas been adjusted retrospectively unless otherwise
stated. All references made in this report to ‘RSPO’,‘us’ and ‘we’ refer to RSPO.
All previous RSPO Impact Reports can be accessed on
our webpage (www.rspo.org).

Credit: RSPO, Sayan Chuenudomsavad

Inside This Report
RSPO in Brief- CEO’s Foreward- Letter from the Co-Chairs of RSPO
- About RSPOOur Journey- The evolution of RSPO impacts- RSPO impacts and sustainable
development- Highlights of RSPO impacts- RSPO around the world

2
10

Impact Themes and Indicators
Respecting Human Rights- Labour Index- Gender Index- Human Rights Risk

18

Including Smallholders- Smallholder Participation- Smallholder Certification

28
36

Protecting and Restoring Nature- Safeguarding Nature- Environmental Sustainability Index- Water Stewardship- Remediation

50
56
62
68

Preventing Fire
- Fire Risk
Limiting Climate Change- Emissions Management
Advancing Certification- Certification Trends
Transforming Markets- Certified Supply- Certified Consumption- Shared Responsibility
Appendices
Appendix 1 Mapping RSPO Impacts and UN SDGs
Appendix 2 Base Data and Glossary76
81

Credit: RSPO, Sayan Chuenudomsavad

CEO’S FOREWORD

Profile ofJoseph D’Cruz

It is with great pride and honour that we present
the RSPO Impact Report 2022, marking nearly two
decades since the roundtable process for sustainablepalm oil was initiated. This report is as much a
detailed summary of our impact as it is a snapshotof RSPO’s history as a global organisation in theever-changing landscape of sustainability.

Kuala Lumpur – are conserved and protected through
RSPO certification. Certified Sustainable Palm Oil(CSPO) production increased by nearly 900,000 metrictonnes in 2021, reflecting a year-on-year-growth of
6.3%. Certified scheme and independent smallholders
operate across an area covering 416,791 ha, which ismore than the total oil palm production area in Ghana.
Greenhouse gas emissions that have been prevented
since 2015 are equivalent to nearly 400,000 cars driven
annually – roughly the emissions of the entire motor
vehicle fleet of Macau and Brunei combined. Over
US$4 million has been directed by RSPO Smallholder
Support Fund to thousands of smallholders across 12
countries since 2013.

Joseph D’Cruz was appointed Chief Executive Officer ofthe RSPO by the Board of Governors with effect from 15
March 2022. With extensive experience in sustainable
policy, business strategy, feasibility analysis, privatisations
and sectoral approaches, JD also brings valuableknowledge in the development and implementation ofcomplex, multi-stakeholder initiatives.

Yet reading beyond the numbers, there is a muchbigger story. Personal stories and testimonials of
people we have collaborated with over the years –from smallholders, partner farmers, communities andcompany managers – all of whom depend on the oilpalm crop, and whose lives and livelihoods have beenenriched when sustainability was placed at the heart ofour actions.

JD has over twenty years’ experience in sustainability,
having worked on a range of global development
challenges from environmental conservation andLooking back, it is highly encouraging to see RSPO’s
evolution over the years. Many milestones have beenreached since our foundation, not least of which is
our significant expansion. Today, we count over 5400
members, spread across all regions of the world.
Despite coming from different sectors of the palm
oil value chain, our membership has been bound by
our solid commitment and shared values, steering us
towards our vision of transforming the market to makesustainable palm oil the norm.
On numerous occasions, I have mentioned thatsustainability is a journey. And while we still have along way to go in our own path to reach our vision,in many ways, RSPO has already transformed themarket – RSPO first sowed the seeds of sustainability
in the palm oil industry two decades ago when it set an
ambitious goal of catalysing change, and today we see
those actions bearing fruit. This Impact Report outlines
in quantitative terms RSPO’s positive impacts across a
broad swath in the sustainability spectrum, showing
how we are squarely aligned with the UN Sustainable
Development Goals. Our impacts continue to be wideand deep in the areas of upholding human rights,
smallholder inclusion, environmental protection, fire
prevention, climate change mitigation, certification andmarket transformation.
To highlight just a few of the key findings of thisreport: today, an estimated 4.5 million hectares ofland are RSPO certified, and of this area, over 300,000
hectares – equivalent to about 12 times the city ofCurrently based in Kuala Lumpur, JD was born in
Malaysia, and educated in Malaysia, Australia and theUnited Kingdom with degrees in politics, economics
and international development. He began his career inmanagement consulting, working in a range of sectors
and industries prior to joining the UN.

climate change to poverty reduction, economic
development and disaster recovery. In his mostrecent position as Special Advisor, Strategic Planning& Innovation at the United Nations Development
Programme (UNDP) in New York, he led UNDP’s
global strategy development, futures and innovation
functions, working directly with the head of UNDP. He
led the creation of a global network of solution-finders
for sustainable development, connecting experts in 170
countries and territories to address world challenges.
During his career he has worked with governments,
industries and communities at all levels across the AsiaPacific as well as globally. He has previously also held
the position of Co-Chair of a Global Future Council atthe World Economic Forum.

I encourage each of our members to contemplate thesestories and feel proud of what we have accomplished,working in synergy throughout the years. May theyalso fuel our motivation to step up over the next
decade, reaffirm our shared responsibility and fortify
our alliances in this next chapter of scaling up thesustainable palm oil value chain.
I look forward to the years to come to continue ourown story of sustainability, as a force for good for theplanet and people.
Joseph D’Cruz
Chief Executive Officer, RSPOThe RSPO Secretariat
In his capacity as CEO, Joseph D’Cruz is supported bya global team at the RSPO Secretariat. The team iscurrently almost 150 people in strength, spanning 19
countries. The RSPO Secretariat handles the day-to-day
operations of RSPO, coordinated from Kuala Lumpur,
Malaysia and Jakarta, Indonesia with offices andcolleagues in North America, Latin America, Europe,
Africa and Asia. The key roles of the RSPO Secretariat
are in standards development, technical guidance,2

Impact Report 2022

assurance, market transformation, stakeholder
engagement and communications, membershipsupport and impacts. These operations are backed by
the critical functions of human resources, businesssolutions, finance, and legal compliance. The RSPOSecretariat aims to be an employer of choice throughcontinuous organisational development and embracing
diversity, in line with the principles, criteria andambitions of RSPO.

The RSPO Secretariat
global presence
Main Offices
Regional Offices
Regional Presence

Impact Report 2022

3

LETTER FROM THE
CO-CHAIRS OF RSPO
Dear Fellow Members and Stakeholders,
In times of crisis, true character emerges. Little did
we know back when we last published our Impact
Report that the world would soon be facing an
unprecedented pandemic upending the status quo.
The global community suddenly found itself plunged
into times of uncertainty, living with new social norms
and working in modified virtual environments from thesafety of the indoors. Yet despite the many challenges
and disruptions brought about by pandemic-related
lockdowns and restrictions, we are proud to say thatRSPO has held itself strongly and soldiered ahead,
emerging even stronger as a global organisation.
This makes the latest RSPO Impact Report 2022 evenmore encouraging, as it encapsulates our continuingachievements aligned with our goal of sustainable
market transformation, despite the many difficulties
we faced.
The challenges of the last few years have urged us to
step back and reflect and rectify our shortcomings,
as well as reinforce our strengths as we navigate thesustainability landscape that grows more challenging
by the day. One of the most significant changes wehave made in this period has been boosting the
RSPO Secretariat’s senior staff with a fresh lineup of
highly competent talent. In March of this year, we
warmly welcomed Joseph D’Cruz (JD) as our new Chief
Executive Officer. JD has an impressive track record
working on a wide spectrum of global development
issues, from environmental conservation andclimate change to poverty reduction and economic
development. He joined us after previously working as
the Special Advisor, Strategic Planning and Innovation
at the United Nations Development Programme(UNDP), and as a Co-Chair of a Global Future Councilof the World Economic Forum. JD’s professionalism,
organisational acumen and down-to-earth approachto leadership has been an inspiration for us all, andwe are confident that he will steer us to even greater
heights in our next stage of transforming the palm oilvalue chain.
RSPO has also been mindful of the struggles ofsmallholders who were severely affected by the
pandemic. Which is why in 2021, we allocated ahardship allowance of 1.2 million Malaysian ringgit(about US$270,000) to the RSPO Smallholder Support
Fund as an additional mechanism of support forsmallholders. This assistance helped farmers inIndonesia and Malaysia access Covid healthcare andmedical assistance, new farming equipment, protective
gear and food supplies.

4

Impact Report 2022

Apart from financial aid, we continue to build closer
ties with smallholder groups and local communities
through our outreach programmes across the regions
where we operate. We are particularly proud of themany milestones that smallholder groups achieved
over recent years, especially in emerging producer
regions. In 2021, The Ngoyaï Gbaayegie Group in Sierra
Leone, composed of nearly 5000 smallholder farmers
owning a total land area of 8667 ha, became the firstindependent smallholders group in Africa to be certified
by RSPO – making them the single largest certified
independent smallholders group across all regions
do date, in terms of the number of smallholders. We
also applaud the Ghanian farmers who became thecountry’s first RSPO certified Independent Smallholder
Group in 2022, embodying how sustainable agriculture
can improve livelihoods and mobilise community
development. Four Mexican Independent Smallholder
groups who participated in the Holistic Programme ofPepsiCo, Nestlé, Oleofinos, and Oleopalma, obtained
the first RSPO certification in the Latin American region.
And in Southeast Asia, Thai smallholders completed thefirst Master Trainers Course from the RSPO Smallholder
Trainer Academy.
At times, as we pore over the details of our projects
and programmes in our day to day responsibilities, wemay be ‘missing the forest for the trees’. Yet when
we look back and take a broader view, and see these‘firsts’ as well as the positive data outlined across theimpact indicators in this year’s report, we should be
proud of just how much we can achieve when we workin synergy. These accomplishments are a reflection of
the genuine resilience, strength and diligence of ourMembership, and for this we would like to express ourheartfelt gratitude.
The storm may have passed, but this does not mean
there won’t be more ahead. Yet we believe that we are
better equipped today with the resources, expertiseand clarity of vision to face the challenges to come.
Anne Rosenbarger and Dato’ Carl Bek-Nielsen

Profile of Dato’ Carl Bek-Nielsen
Dato’ Carl commenced his career with United
Plantations Bhd in 1993 as a Cadet Planter before
obtaining his degree in Agricultural Science fromthe Royal Veterinary and Agriculture University of
Copenhagen, Denmark. In 1997, he returned to
Malaysia to resume his career as a Corporate Affairs
Officer with United Plantations Bhd. Today, he holds
the position of Vice Chairman and Chief Executive
Director of United Plantations Bhd. He is involved
in several aspects of the palm oil industry and thecompany’s overall business operations, adopting a“hands-on” approach.

he was appointed to the RSPO Board of Governors
as Co-chair representing the MPOA. Dato’ Carl haspresented several papers at various international andlocal conferences on issues relating to sustainable palm
oil production and agriculture in general.

He has close to 20 years of experience within thepalm oil Industry, and has been a Council Member
on the Malaysian Palm Oil Council (MPOC) for a totalof 15 years from 2005 to 2020. He has also been amember of the Programme Advisory Committee tothe Malaysian Palm Oil Board from 2008 to 2019. He
has been a Council Member of the Malaysian Palm Oil
Association (MPOA) since 2005.. In November 2014,

Profile of Anne Rosenbarger
Anne Rosenbarger is the Global Engagement Manager
for Commodities and Finance at the World Resources
Institute. She has been based with WRI in Indonesia
since 2010, concentrating on the links between
agribusiness supply chains and forest conservation.
Her primary focus is on engaging and convening
stakeholders to identify, align on, and implement
evidence-based tools and processes for addressing
commodities-driven deforestation and conversion. She
is currently working as part of the Global Forest Watch
Pro and Forest Data Partnership initiatives.

Prior to joining WRI, Anne conducted research ona range of topics related to tropical ecology andcommunity based forestry management. She received
her Master's degree from the Nicholas School of theEnvironment at Duke University.

Anne was elected to the RSPO Board of Governors
in 2015, representing Environmental NGOS and was
appointed as co-chair in 2018. She serves on various
other RSPO groups such as the Standards Standing
Committee, Biodiversity and High Conservation Value
Working Group and No Deforestation Task Force.

The RSPO Board of Governors
Dato’ Carl Bek-Nielsen and Anne Rosenbarger
co-chair the RSPO Board of Governors that comprises
16 members, designated by the RSPO General
Assembly to serve a term of 2 years each. Another 16
members serve on the Alternate Board of Governors.
To ensure an efficient and progressive management,
the BoG is supported by four Standing Committees.
Each Standing Committee (Standards, Assurance,
Market Development, Smallholders) includes members
from the Board of Governors and Alternate Board ofGovernors, as well as other RSPO members.

The representation and composition of the RSPO Boardof Governors is:
Sector/Member Category

Number of Seats

Oil Palm Growers
Palm Oil Processors and/or Traders
Consumer Goods Manufacturers
Retailers
Banks/Investors
Environmental/Nature Conservation NGOs
Social/Development NGOs

4*
2
2
2
2
2
2

*Representing oil palm growers in Indonesia, Malaysia, Rest of theWorld and Smallholders

Impact Report 2022

5

ABOUT RSPOThe Roundtable for Sustainable
Palm Oil (RSPO) is a non-profit,
multi-stakeholder organisation
with the objective to promote thegrowth and use of sustainablepalm oil and palm oil products.
Our vision is to transformmarkets to make sustainablepalm oil the norm, by convening
stakeholders from across its
different sectors to set andimplement the most ambitious
standard for sustainability inthe industry. RSPO members
represent the entire spectrum ofpalm oil stakeholders, from thosethat grow oil palm and produce
palm oil (Oil Palm Growers,
Independent Smallholders), thosethat trade, process, use and sellpalm oil products (Processors
and/or Traders, Consumer Goods
Manufacturers, Retailers), thosethat finance the industry (Banks/
Investors) to those that monitor
the industry (Environmental/
Nature Conservation and Social/
Development NGOs).
Since our establishment in 2004,
the ambition of RSPO has always
been to drive change. Our standards
have led the way in defining
what sustainability means for thecountries, companies and farmers
that depend on the crop. Ourcertification covers the entire spanof the palm oil value chain fromplantation to mill to refinery tofactory to consumer, emphasising
the crucial element of traceability.
Our impacts describe the positivesocial and environmental changethat we are making and that wehope to make, strengthening ourstandards and certification in theprocess to ensure that palm oilremains equitable and sustainable
in the decades to come. This is
only possible through the efforts
and cooperation of our members,
who meet annually at the General
Assembly to set the ambition of
RSPO into motion.
			

RSPO Throughout The Years

In the 15 years since the first metrictonne of Certified Sustainable Palm
Oil (CSPO) was produced in 2008,
the global certified area of oil palm
and global production of CSPO hasgrown in size and scope. It now
represents a fifth of all palm oil
produced in the world. Our certified
production base covers 21 countries
and over 460 mills in the key regionsof Southeast Asia, Latin Americaand Africa. These certified volumes
are processed and used in over
6,000 certified facilities globally to
produce a wide range of products, agrowing number of which carry the
RSPO trademark. Our membershiphas grown from a few founding
members in 2004 to over 5,200,
with entrenched support in Europe
and North America, and increasing
interest from developing regions.

2001

In 2020, the world changed when
the coronavirus disease (COVID-19)
pandemic led to unprecedented
global disruption. Consequently
there were fears that RSPO’s
ambitions would be disrupted.
This has not happened. In spite ofoperational lockdowns, individual
restrictions and challenges for ourmembers, RSPO has continued to
grow. Between 2019 and 2021, ourmembership has grown by over650. The RSPO certified area has
grown by over 400,000 hectares
worldwide, while the global
production and consumption of
CSPO has accelerated. Our members
have collectively continued to drive
the change that RSPO wants tomake even in the “new normal”. We
want to continue moving forwardwith this momentum. There ismuch ground to cover before
sustainable palm oil is the norm, but
the entrenched support by RSPO
members shown over the past two
years is a sign that it can be done.

2004

2005

2006

Initiative: WWF
Initiative: RSPO
exploresformally establishedpossibilities for aroundtable onsustainable palm oil

Initiative: RSPO
Principles andCriteria (P&C) pilot
launched

Membership: RSPO
Members Code of
Conduct adopted

2010

2009

2008

2007

Initiative: New
Planting Procedure(NPP) launched
Membership: RSPO
reaches 500
members

Initiative: RSPO
Complaints
System adopted

Market: World’s
ﬁrst shipment ofCertiﬁed
Sustainable Palm
Oil (CSPO) arrives
in Rotterdam

Initiative: RSPOP&C 2007
adopted

2011

2012

2013

2014

Initiative: RSPO
Trademarklaunched
Market: Global
certiﬁed production
area reaches 1
million hectares

Initiative: RSPOeTrace system for
CSPO trading
launched
Membership: RSPO
reaches 1000
members

Initiative: Revised
P&C 2013 adopted
Initiative: RSPO
Smallholder
Support Fund(RSSF) launched

Initiative:
Remediation andCompensation
Procedure (RACP)
adopted

2018

2017

2016

2015

Initiative: Revised
P&C 2018
adoptedMembership:
RSPO reaches
4000 members

Initiative: RSPO
PalmTracelaunched
Initiative: GeoRSPO
launched

Membership:
RSPO reaches
3000 members

Initiative: RSPO
joins ISEAL Alliance
Initiative: RSPO
makes
Jurisdictional
Approachcommitment

2019

2020

2021

Initiative: RSPO
Independent Smallholder(ISH) Standard adopted
Initiative: RSPO Shared
Responsibility
requirements adopted

Initiative: First
independent smallholder
group certiﬁed under RSPOISH Standard
Market: Global certiﬁed
production area reaches 3
million hectares

Initiative: RSPOHotspot Hub
launched
Membership: RSPO
reached 5000
members

Credit: RSPO, Jonathan Perugia

6

Impact Report 2022

Impact Report 2022

7

RSPO IN NUMBERS
Growth in RSPO membership

Member Categories

Ordinary
AssociateAﬃliateOrdinary Membership Representation by Category (as of 31 December 2021)
Oil Palm Growers: 226
Processors and/or Traders: 748
Consumer Goods Manufacturers: 896
Retailers: 80
Banks/Investors: 14
Environmental NGOs: 41
Social NGOs: 17
2021

2,022

3,103

2020

1,931

2019

1,840

2018

1,711

2,255

2017

1,659

1,965

2016

1,466

108

2,948

112

2,632

105
93
105

1,618
1,000

109
2,000

3,000

4,000

5,000

Growth in RSPO Certiﬁed Area
2021
2020
2019
Indonesia

2018

Malaysia
Africa

2017

Latam
2016

RoW
500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Note: All ﬁgures are cumulative of the calendar year (1 January to 31 December)

Growth in Estimated CSPO Actual Production (AP)CSPO AP - Identity Preserved

CSPO AP - Mass Balance

2021
2020
2019
2018
2017
2016
2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Note: All ﬁgures are cumulative of the calendar year (1 January to 31 December)

8

Impact Report 2022

14,000,000

Credit: RSPO, Sayan Chuenudomsavad

Impact Report 2022

9

THE
EVOLUTION OFRSPO IMPACTS
In 2017, the first RSPO Theory of
Change was published, providing
a roadmap on how RSPO andour members would achieve thevision of transforming markets
to make sustainable palm oil thenorm. By engaging stakeholders,setting standards and showing
sustainability leadership, RSPO hascreated a conducive framework
and an enabling ecosystem todrive sustainability forward in
the global palm oil industry. As
all stakeholders across the value
chain play their own roles of
responsibility, the vision of RSPO
is being achieved and represented
through our three impact pillars:
People, Planet and Prosperity.
The RSPO Theory of Change has
underpinned our work and progresssince by outlining the strategies
that we must take, and the support
that we must galvanise, to turntheory into reality. Our Monitoringand Evaluation (M&E) framework
was aligned to the Theory of
Change, placing the outputs andoutcomes of the RSPO standards
in the context of our impact
pillars. Data gathered through
RSPO certification, and other RSPO
systems and procedures, is crucial
in defining the progress that has
been made, as well as identifying
trends and gaps. This process
of monitoring and evaluation is
supported by research, RSPOcommissioned or independentlyconducted, with the RSPO Research
Agenda guiding priority topics forresearch institutions to assess andexamine the impact of RSPO.
We are now taking this further. In
order to provide a broader, deeper
and better narrative of RSPO and
its impacts, we are revising ourapproach to M&E, and redefining
how we present our intended
impacts. Our Theory of Change isbeing reviewed for relevance in achanging sustainability landscape to

The RSPO Impact Framework
RSPO Impact
Theme

RSPO Impact
Indicator

Impact Indicator
Description

Respecting
Human
RightsGender Index

Progress on inclusivity, equal access andempowerment for women through
RSPO certification

Labour Index

better illustrate how our expectedchange will be achieved. Our M&E
framework has been expanded
to Monitoring, Evaluation andLearning (MEL), adding a “learning”
function to create feedback loops
that set our standards development
and assurance systems on a pathof continuous improvement. And
our impacts have been recalibrated
into a new RSPO Impact Framework
to better narrate what RSPO has
achieved and how much further
we have to go. These revisions are
expected to be completed in 2023,
providing a clearer, more strategic
and relevant direction for RSPO tomove into the future.

Human Rights
Risk
Including
Smallholders

Smallholder
Participation
Smallholder
Certification

Protecting
and Restoring
NatureThe new RSPO Impact Framework
underpins this Impact Report.
Through a thorough review of ourdata and comprehensive mapping
against the United Nations’Sustainable Development Goals,
we have codified our impacts
into an initial set of seven Impact
Themes and 15 Impact Indicators.
The themes are arranged in a
general rhythm of People, Planet
and Prosperity. Each indicator
has been developed to align with
our impact pillars and mapped
to priority SDG goals and targets.
Although some indicators are stillin development as we adjust ourdata systems and architecture, we
are using the framework for thisreport as a statement of intent
and ambition. The RSPO Impact
Framework is also designed to
be fluid and flexible. As the RSPO
standards evolve, our impact
indicators can be adjusted toinclude new aspects or introduce
new indicators on important topics
such as decent living wages andjurisdictional approaches. This
Impact Report is an introduction
to the new framework, as a way ofdefining how RSPO will evaluate
its progress in the years to come,
expanding and evolving
as necessary.

Safeguarding
NatureEncouraging and assisting palm
oil smallholder farmers towards
sustainability
Progress on the reach and extent ofsmallholder farmers within
RSPO certification
Progress on halting deforestation andpreserving biodiversity within
RSPO certification
Progress on promoting environmentally
sustainable practices within
RSPO certification

Water
Stewardship

Promoting responsible usage of waterand protecting freshwater ecosystems
within RSPO certification

Fire Risk

Limiting
ClimateChangeEmissionsManagement

Advancing
Certification

Certification
TrendsTransforming
Markets

Status and risk level of human rights
breaches within RSPO certification

Environmental
Sustainability
Index

Remediation

Preventing
Fire

Progress on respecting workers’ rights
and labour conditions through
RSPO certification

Certified
SupplyCertified
Consumption
SharedResponsibility

Upholding responsibility with respect tohistorical deforestation through
RSPO procedures
Progress on mitigating and minimisingfire risks within RSPO certification
Progress on climate change goals
through emissions avoidance andreduction within RSPO certification
Progress on the reach, extent andtraceability of RSPO certification in the
global palm oil market
Progress on shifting global production ofpalm oil towards sustainability
Progress on shifting global consumptionof palm oil towards sustainability
Ensuring certified consumption matches
certified production, and all RSPO
members follow in the spirit of
RSPO impacts

ImpactPillarPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITYPEOPLE

PLANETPROSPERITY

Credit: RSPO, Sayan Chuenudomsavad

10

Impact Report 2022

Impact Report 2022

11

RSPO IMPACTS
AND SUSTAINABLE
DEVELOPMENT
Sustainable development in the palm oil industry andacross its value chain has been at the heart of RSPO
since our inception in 2004. While our ambitions
have never wavered, the way that RSPO measures,
reports and narrates its impacts has evolved as ourreach and organisation has grown. In 2017, ourTheory of Change (ToC) defined our impacts along
three pillars of People, Planet and Prosperity. In thisreport, we have connected and codified our impacts
in a new framework with the global vocabulary
on sustainability, the United Nations Sustainable
Development Goals.
This process started with a comprehensive mappingof available metrics and data gathered by the RSPOSecretariat against the SDG goals, targets and global
indicators (Figure 1). Much of this data comes fromthe certification requirements of RSPO’s P&C 2018
standard, but also from other requirements, systems
and procedures within RSPO such as our Grievancesystem, Annual Communication of Progress (ACOP)
reporting, RSPO Smallholder Support Fund (RSSF), andFire Hotspot monitoring in an effort to coalesce usageof our broad datasets. In this way, we have better
understood how our contributions to SDG goals andtargets can be made.

PEOPLE

PLANETPROSPERITY

Figure 2: RSPO Impacts and Priority SDGs

12

Impact Report 2022

What are the Sustainable
Development Goals?
The United Nations Sustainable Development Goals’ 2030 Agenda
for Sustainable Development has the overall goal of ‘Leaving
No One Behind’. It was first adopted in 2015 by the UN General
Assembly and at its heart are the SDGs: 17 goals, 169 targets
and 248 indicators chosen to tackle major global development
challenges by 2030. They serve as an international commitment to
end extreme poverty, and to create a fairer and environmentally
sustainable world.

RSPO
activity

Metricsand Data

Related SDG
indicator
RSPO
ImpactIndicator

SDG Goal

The SDGs define a common framework of action and languagethat helps companies communicate more consistently andeffectively with stakeholders about their impact and performancein a 5-step process. These goals also help bring together partners
to address the world’s most urgent societal challenges. The SDGs
have become a universal and holistic approach for governments,
businesses and NGOs to engage each other around sharedsustainability aims, commitments, outcomes and impacts.

RSPO
outcomein ToCSDG target

RSPO
ImpactPillarFigure 1: Mapping RSPO Impacts to SDGs

Through this process we have identified an initial listof 66 linkages between the 248 SDG targets/indicators
and RSPO. A summary of these linkages is shown inAppendix 1 (pg. 76) and the full indicator mapping
analysis is available in the supplementary data file that
accompanies this Impact Report. These linkages form
the basis of the RSPO Impact Themes, and we cansee that several Impact Indicators in our RSPO Impact
Framework already have strong links to SDG targets.
This framework will be further refined as part of theongoing review of RSPO’s Theory of Change which is
expected to be completed in the first half of 2023,
as well as inform the upcoming revision of the RSPO
Principles & Criteria in 2023.
With the exception of SDG 14 (Life Below Water), RSPO
has linkages to all SDGs. Some of these linkages are
direct, while others are indirect. While the ambition
of RSPO is to show our contributions and attributions
to all linkages, as a means of focus we have identified
nine priority SDGs where our impact is most direct
and strategically aligned to our three impact pillarsof People, Planet and Prosperity. Neatly, each impact
pillar has three priority SDGs connected to it (Figure 2).

Credit: RSPO, Wangon Multi Solus

We are now 8 years away from2030, the year that the SDG targets
should be met. Achieving thisambition requires contribution froman entire spectrum of stakeholders.
RSPO is part of that momentum,
and in defining and aligning our
impacts to the SDGs, we provide
a framework for our members tobetter understand their part insustainable development and how
they can contribute to the SDGs
on an individual, organisational,
national and global level.

Impact Report 2022

13

HIGHLIGHTS OFRSPO IMPACTS
Respecting Human Rights

An estimated 500,000
workers in estates and mills
globally are represented
under RSPO certification
through the Principles andCriteria (P&C) standard.
Labour Index

Women represent
12.1% and 24.2% ofmanagement andadministrative roles,
respectively, in certified
mills and estates.
Gender Index

Over 90% of
certified estatesand mills haveintroduced formalinternal grievancesystems.

Certified scheme
and independent
smallholders operate
an area the size of
416,791 ha, more thanthe oil palm production
area in Ghana.
Smallholder Certification
Protecting and Restoring Nature

RSPO certification
has significantly
reduced the use ofrestricted pesticides
and herbicides forpest or disease control
in favour of natural
biological methods.
Environmental Sustainability Index

Impact Report 2022

Respecting Human Rights

Within certified
estates and mills,
female workers
receive training inequal proportion tomale workers .
Gender Index

Respecting Human Rights

78% of human rightsrelated Complaints
cases have been closed,
including cases related
to land, FPIC (Free, Priorand Informed Consent),labour and gender.
Human Rights Risk

Including Smallholders

14

Respecting Human Rights

Labour Index
Respecting Human Rights

The data outputs and distinct outcomes of RSPO and our various standards, systems and proceduresis expansive. The goal is to become broader, deeper and better in learning from what is working andwhat is not, and understanding the beneficial impacts we can report and the significant stories we cantell. This Impact Report covers the seven Impact Themes and 15 Impact Indicators in depth over thefollowing pages. For brevity, here are 24 highlights of our key achievements that show how we haveadvanced our three pillars of People, Planet and Prosperity.

Including Smallholders

Sierra Leone’s Ngoyaï
Gbaayegie Group becomesthe first Independent
Smallholder (ISH) Groupin Africa to achievecertification, also the firstcertified group outside
Southeast Asia.
Smallholder Certification
Protecting and Restoring Nature

Certified palm oil mills
have an average water
footprint of 0.005 m³/
kg, lower than othervegetable oils such as
soybean and rapeseed.
Water Stewardship

Since 2015, 238
RaCP Compensation
Plans have been
implemented,
remediating for an area
equivalent to the sizeof Singapore.
Remediation

Including Smallholders

US$4.03 million under the
RSPO Smallholder Support
Fund (RSSF) has supported
38,597 farmers across
12 countries since 2013,
resulting in 71% of current
certified independent
smallholders.
Smallholder Participation
Protecting and Restoring Nature

An area of 301,020 ha,
almost 30 times the size of
Paris, has been conserved
and protected through
RSPO certification.

Safeguarding Nature
Protecting and Restoring Nature

Improved momentum inprocessing Remediation
and Compensation
Procedure (RaCP) cases,
with 317 RaCP cases
closed since 2019,representing 81% of allcase closures.
Remediation

Protecting and Restoring Nature

Preventing Fire

If there is a fire hotspot
detected in Indonesia or
Malaysia, there is a lessthan 1.5% probability
that it is within an RSPO
certified concession.
Fire Risk

Limiting Climate Change

Indicative data,
supported byresearch, shows that
CSPO is associatedwith a lower rate ofgreenhouse gas (GHG)
emissions compared toconventional palm oil.
Emissions Management - Mitigation

RSPO Trademark licences
have increased to 1,676
covering over 100
countries and territories,
with increasing growthseen in China, Japan andSoutheast Asia.
Certification Trends
Transforming Markets

Uptake of CSPO andcertified palm oil
products exceeds
80% in Europe andNorth America, withencouraging growth alsoin Latin America, China
and Malaysia.
Certified Consumption

Cumulative GHG
emissions avoided
since 2015 equivalent
to 395,289 cars driven
annually, more thanthe entire motor
vehicle fleet of Macauand Brunei combined.
Emissions Management - Avoidance

Advancing Certification

Since RSPO certification
began, global certified
area has increased
from 125,000 ha over3 countries in 2008, to
4.5 million ha over
21 countries.
Certification Trends

Advancing Certification

Limiting Climate Change

Transforming Markets

Production of Certified
Sustainable Palm Oil(CSPO) increased by nearly
900,000 metric tonnes(MT), a year-on-yeargrowth of 6.3%.
Certified Supply

Advancing Certification

Average CSPO yields fromRSPO certified estatesand mills is 4.5 MT/ha,
compared to average yields
of 3.2 MT/ha for overallpalm oil.
Certification Trends
Transforming Markets

Downstream consumptionof CSPO through consumer
and retail products
increased by over 914,000
MT, a year-on-year growthof 12.0%.
Certified Consumption

Transforming Markets

54% of supply chain
members subject toShared Responsibility
requirements met
their 2021 CSPO
uptake target.
Shared Responsibility

Addressing Grievance

Average time to close
Complaints cases has
improved to 273 working
days since the Complaints
and Appeals Procedure in
2017, almost equivalent
to one calendar year.
Respectful Conduct

Impact Report 2022

15

Chongqing, China
Visoko,Bosnia and Herzegovina

October 2021

2021 China Sustainable Palm
Oil Supply Chain Forum and5th RSPO China Forum

July 2021

Nuremberg, Germany

PAK RAMPART DOO becomes
first RSPO member in Bosnia
and Herzegovina

February 2020

Nanjing, China
November 2021

2020 China Sustainable Palm
Oil Supply Chain Forum and4th RSPO China Forum

Tehran, IranRSPO participated in Biofach 2020
and Vivaness 2020, the world’s
leading trade fair for organic foodDecember 2020

Suzhou, China

Behdash Chemical Co.
PJS becomes first RSPO
member in IranAugust 2020

2020 China Sustainable Palm
Oil Supply Chain Forum and4th RSPO China Forum

Paris, France
March 2021

RSPO ScanApplaunched in France

South Korea
November 2021

Webinar for South Korean
members and stakeholders

Campeche, Mexico
March 2020

Eighth RSPO Latin American
Conference and second
Mexican Oil Palm Congress,
organised with FEMEXPALMA

North America
June 2020

First North America
Sustainable Palm Oil
Dialogue launchedTokyo, Japan

EuropeFebruary 2020

September 2020

RSPO Workshop with Japan Sustainable
Palm Oil Network (JaSPON), ahead ofTokyo 2020 Olympics

Second Sustainable
Palm Oil Dialogue
Europe, hosted with
IDH and EPOA

Kuala Lumpur, Malaysia

El Jadida, Morocco
Mexico City,
MexicoJune 2021

MoU signed withFEMEXPALMA to alignstrategic efforts

Muscat, Oman

September 2021

Kapachim Maroc becomes first
RSPO member in Morocco

Veracruz,
MexicoFebruary 2020

Agroindustrias De
Mapastepec Sa De Cv
becomes first grower
in Mexico to be RSPOP&C certified

MoU signed with
GREPALMA to alignstrategic efforts

Areej Vegetable Oils
and Derivatives SAOC
becomes first RSPO
member in Oman

Capiatá, Paraguay

Global Youth for
Sustainable Palm Oil
Summit 2021, attended
by 8,000 young people
from over 20 countries

August 2021

January 2021

Ngoyaï GbaayegieGroup becomes
first Independent
Smallholder Groupcertified by RSPOin Africa

Goldtree (S.L)
Ltd becomes
first grower in
Sierra Leone
to be RSPOP&C certified

Contiparaguay S.A becomes
first RSPO member in Paraguay

Our way of working may have changed significantly due to thecoronavirus disease (COVID-19) pandemic, but RSPO’s efforts to makesustainable palm oil the norm has continued even in the “new normal”.
Here are some highlights of our virtual and in-person initiatives,
outreach efforts and achievements over 2020 and 2021.

Australia

Solantra Solutions
Private Limited becomes
first RSPO member in
The Maldives

May 2021

Webinar for Australian
members and stakeholders

Galle, Sri Lanka
Ocotber 2020

July 2020

RSPO AROUND
THE WORLD
Impact Report 2022

December 2021

RSPO Roundtable
2021, titled “Climate
Resilience: Assuring
the Future of
Sustainable Palm Oil”

July 2020

Daru, Sierra Leone

Watawala Plantations
becomes first grower in South
Asia to be RSPO P&C certified

Douala, Cameroon
December 2020

16

November 2021

Five-year MoU signedwith Monash University
to collaborate on
sustainable palm oil
research

Malé, Maldives

Guatemala City,
GuatemalaJune 2021

January 2020

December 2020

SOCFIN SA becomes firstgrower in Cameroon to be
RSPO P&C certified

Odisha, India
February 2020

September 2020

October 2020

11th Young
India Challengewith RSPO as
sustainability
partner#KnowYourPalm
campaign
launched incollaboration
with The Better
India

SecondSustainable
Palm Oil
Dialogue India

Jakarta, Indonesia
January 2020

September 2021

5 year MoU signed with
Global Green GrowthInstitute (GGGI)RSPO member Super Indo launches
eco-labelled Palm Cooking Oil 365
with RSPO Trademark
South Sumatra,Indonesia

Riau, Indonesia
July 2021

Beringin Jaya Cooperative
becomes world’s first
RSPO-certified cooperativeon peatland

September 2020

KUD Mitra Bersama
becomes world’s firstindependent smallholder
group certified under
RISS (RSPO Independent
Smallholder Standard)

Impact Report 2022

17

RESPECTINGHUMAN RIGHTS
Workers and communities are integral rights holders within the oil palm
industry. The coordination and efforts of workers, labouring together asa coordinated hive of activity, ensure that fruit is harvested, crops aredelivered and valuable oil is extracted. Two of the seven principles under
the RSPO Principles and Criteria (P&C) 2018 are focused on creating
positive impact towards People, to promote sustainable livelihoods
and poverty reduction. Principle 4 (Respect Community and Human
Rights and Deliver Benefits) ensures that the rights of communities’
are protectd, respected and remedied by RSPO certified plantations
and mills. Principle 6 (Respect Workers’ Rights and Conditions) aims toensure that the workforce engaged in palm oil production have equal
opportunities to fulfill their potential in work, are not discriminatedagainst and have a decent working and living environment. Throughthese requirements, RSPO has and continues to ensure that the
livelihood of people involved in the production of each drop of certified
palm oil is achieved through decent work and equal opportunity.

In order to make sure that employee rights in palm oil are respected
throughout the supply chain, it is important that workers are wellorganised and involved in social dialogue. That’s why the participationof unions in the Roundtable on Sustainable Palm Oil is essential.
Indonesian trade union Hukatan, a CNV Internationaal partner, wasthe first to join RSPO. In 2020, CNV Internationaal itself became amember. It’s positive that labour rights are part of the RSPO standard,
but I feel that a stronger focus on social impact is indispensable for the
coming years, as there are still many steps to be taken when it comes tocompliance. The results of negotiations will become part of Collective
Bargaining Agreements (CBAs) and will be monitored and periodicallyrenewed. This way the impact of RSPO on the daily life of workers in
the palm oil sector will be positive and sustainable.
Eva Smulders
Co-Chair of the RSPO Human Rights Working Group (HRWG),
representing CNV Internationaal

Credit: RSPO and Credit:
Sayan Chuenudomsavad
UNICEF & Fauzan

18

Impact Report 2022

Impact Report 2022

19

LABOUR INDEXPEOPLEPROSPERITYWorldwide, there are millions employed in the palm
oil sector. In Indonesia and Malaysia alone, there
are at least 4.3 million people working in palm oil
plantations1, with the industry supporting millions
more indirectly2. Labour rights are fundamental tothe production of palm oil. A lack thereof can cause
fmajor disruption: for example, since 2020, Malaysia
has experienced a labour shortage in its palm oil
sector as the coronavirus disease (COVID-19) andsubsequent restrictions led to a scarcity of foreignlabour, which the industry relies on. Consequently,
both Malaysian palm oil and Certified Sustainable

Palm Oil (CSPO) production declined in 2021 (seeCertified Supply, pg 70). However, as with agriculture
in general, labour in palm oil is both a reward
and a risk. Millions of individuals are in gainful
employment in an industry worth at least US$65
billion globally3. The production and trade of oil palm
directly contributes towards national Gross Domestic
Product as well as indirect contributions to national
development through tax revenues. But that size also
raises the risks of labour issues that impact workers
and their fundamental human rights.
Certified Palm Oil Mills

Mills / Estates with asystem to record internalgrievances
Grievance
Open cases as a percentage
of all cases received at
year-end

Demographics

Non-locals as a percentage
of total mill / estate
workers

Demographics
and
Employment

Non-locals on
non-permanent contracts
as a percentage of total
non-local mill / estate
workers

Training

Non-management workers/ Field workers trained as apercentage of total nonmanagement mill workers/ field estate workers

Indonesia
Malaysia
Latin America
AfricaROW
Indonesia
Malaysia
Latin America
AfricaROW
Indonesia
Malaysia
Latin America
AfricaROW
Indonesia
Malaysia
Latin America
AfricaROW
Indonesia
Malaysia
Latin America
AfricaROW

90.73%

8.8%

15.7%

12.2%

79.4%

88.2%
90.8%
93.3%
100.0%
100.0%
5.5%
11.7%
1.1%
24.6%
6.1%
13.1%
30.7%
6.9%
3.1%
1.6%
1.5%
19.7%
10.1%
20.8%
0.0%
81.4%
86.9%
58.8%
85.7%
90.2%

Oil Palm Estates

95.1%

2.5%

28%

22.2%

87.8%

91.4%
100.0%
93.3%
100.0%
100.0%
4.0%
1.6%
4.9%
0.0%
33.3%
17.7%
75.1%
1.3%
4.1%
0.3%
27.5%
20.1%
4.7%
16.3%
3.9%
91.3%
92.7%
87.8%
54.3%
94.4%

Figure 1: Labour-related statistics in a sampling of RSPO Certified Units (2021)

Indonesia has an estimated 3.78 million plantation workers, out of 16.2 million working in farms, plantations, mills and refineries (including smallholders).
Source: National Development Planning Agency (BAPPENAS). Malaysia employs at least 505,972 plantation workers (2012). Source: Malaysian Palm Oil Board(MPOB).
2
Indonesia’s palm oil industry is estimated to support 12 million people indirectly, mainly in rural areas. Source: Director General of Estate Crops (Ditjenbun).
3
Global Market Report: Palm Oil, Sustainable Commodities Marketplace Series 2019, International Institute for Sustainable Development (IISD).
120Impact Report 2022

Through compliance with the RSPO standards, where
labour rights are concerned, RSPO certification aims
to ensure that the rights of workers are respected andprotected, upheld and aspects of wellbeing assured.
Within Principle 6, this includes a prohibition of
discrimination in any form (Criteria 6.1), adequate
pay and working and living conditions (6.2), rights tocollective bargaining and freedom of association (6.3),
no child labour (6.4), no harassment or abuse (6.5),
no forced or trafficked labour (6.6), and occupational
health and safety (6.7). These indicators are audited
annually by independent third-party Certification
Bodies (CBs) accredited by RSPO’s accreditation body,
Assurance Services International (ASI), which oversees
and monitors the performance and capabilities of
all CBs. Through these audits, RSPO is able to gauge
compliance and obtain data that describes the working
conditions within certified palm oil producers.
Using a sample of 206 P&C Metrics Templates4
submitted by Units of Certification (units), we also
have data to infer the current state of selected labour
aspects (Figure 1). However, due to the incomplete
nature of the dataset, we are reporting these numbers
indicatively for now. Globally, almost 500,000 workers
are employed by RSPO certified units, 88% of whom
work in plantation estates and 12% in mills. Dependingon the country or region, demographics vary. In
Malaysia, non-local workers represent three quartersof the estate workforce while only 0.3% are non-local
workers in Rest of the World (ROW) estates (including
Papua New Guinea, Thailand and Cambodia). Of theoverall workforce, most are employed as permanent
staff, but the incidence of staff on non-permanentcontracts appears to be higher in Latin American and
African estates. For local workers, a large majority arepermanent staff in both estates and mills. This ratio issimilar for non-local workers5, although there appears
to be a larger extent of non-local workers employed
under non-permanent contracts in Indonesia and ahigher proportion of non-local workers employed aspermanent staff in Latin America.
Using this labour data in combination with data fromother Impact Indicators allows us to tell an even morenuanced story. For example, of the half of a million
workers represented through P&C 2018 certification inestates and mills across 21 countries, we estimate that
121,000 of these workers are in Malaysia, representing
24% of the global workforce associated with RSPO
certification. Certification data shows that Malaysian
actual production of Certified Sustainable Palm Oil(CSPO) represents over 25% of global CSPO production.
This implies that, in Malaysia, certified estates andmills are less labour-intensive than the global average,
producing more certified FFB and CSPO per unit oflabour. This has obvious implications to consider as
the industry as a whole considers mechanisation andautomation as pathways forward to boost overall

An estimated500,000
workers inestates and millsin 21 countries
are represented under RSPO
Principles and Criteria (P&C)
through certification

productivity. From this analysis, we note that labour
intensity within RSPO certification is highest in Africa,
which are important distinctions to note as we improve
how we engage, guide and work with our members.
The P&C 2018 also requires certified units to havedocumented human resource procedures for recruiting,hiring and managing all these workers (Criteria 3.5)
and an occupational health and safety plan (3.6)
applicable to all. Criteria 3.7 requires staff in certified
units to be appropriately trained. In estates, nearly
76% of estate workers received at least one training in
2021 while 88% of their counterparts in mills received
training. Access to training was afforded to all levelsof the workforce (including scheme smallholders),
but was mainly focused on field workers in estates(87.8% trained) and non-management workers in mills(79.4%).
A documented and mutually agreed system foraddressing complaints and grievances is also required(Criteria 4.2). Over 90% of certified estates and mills
have a formal internal grievance system, including allunits in Africa and ROW, and all estates in Malaysia.
If an internal grievance case is recorded, reports
indicate that almost all cases are closed within theyear (including historical cases from previous years).
However, there is still a higher level of unresolved cases
within mills in Africa and estates in ROW that represent
a potential risk that may lead to the escalation offormal Complaints through the RSPO’s independent
Complaints System.

Introduced in May 2021 as a prerequisite for certification, as stipulated in the P&C 2018. P&C Metrics Templates are verified as part of RSPO’s independent
third-party certification audits. This sample represents some 47% of currently P&C certified Units of Certification, with each unit representing a palm oilmill(s) and its supply base(s).
5Non-local workers are defined under the current P&C Metrics Template Guidance as migrants (foreign nationals) and transmigrants (nationals from different
regions within the country). The latter is noted to be particularly significant in Indonesia.
4

Impact Report 2022

21

Other labour-related aspects of P&C 2018 are in theprocess of metrication and development, including
Lost Time Injury Frequency Rate6 (LTIFR, Indicator
6.7.5). Overall, some of the RSPO labour datasets areprimarily for demographic description while some
could be benchmarked to indicate progress or variance(if any) from norms. These insights can also be
supported through commissioned research to assess
the impact of certification on labour issues. Moving
ahead, we intend to compile this data into a Labour

Index, using weighted components from the various
available labour-related datasets. This Index will also
include elements of risk, incorporating incidencesof labour-related Non Compliances (NCs) reported
as part of annual RSPO certification audits by scale
and by region. In doing so, we hope to have a clearer
understanding of our impacts on labour within RSPO
and identify ways to assist and guide our members
towards best labour practices.

GENDER INDEXPEOPLEPROSPERITY

Mao Zedong, in rallying women to join China’s labour
force, said ‘women hold up half the sky.’ But what
about under palm oil skies? A Food and Agriculture
Organization (FAO) study reports that women form
43% of agricultural labour globally1, but are more
likely to be informally self-employed to balancehousehold responsibilities. Formally, in terms of
waged rural labour, female participation can range
from 1.4% (Nigeria) to 8.6% (Indonesia) to 16.6%

Participation
and Inclusion

Credit: RSPO, Jonathan Perugia

Female workers /Female estate workers as apercentage of total workers

Equal Access

Female:Male ratio ofworkers trained /estate workers trained

Empowerment

Female workers inmanagement roles asa percentage of total
management roles /administrative roles(Malawi) of the working females. Within palm oil,
statistics are scant. But women are present, often
in substantial numbers, especially in Africa. Within
RSPO certification, under P&C 2018, gender issues are
addressed implicitly in Criteria 6.1 (no discrimination),
6.5 (no harassment, reproductive rights), 4.6.3 (equal
opportunity in small holding land titles), and Indicator
7.2.11 (pesticides and pregnancy/breastfeeding).

Indonesia
Malaysia
Latin America
AfricaROW
Indonesia
Malaysia
Latin America
AfricaROW
Indonesia
Malaysia
Latin America
AfricaROW

Certified Palm Oil Mills
4.9%
11.0%
8.6%
7.5%
7.9%
7.6%
0.7:1
3:1
2:1
1.3:1
1.2:1
0.8:1
6.4%
20.2%
12.1%
12.3%
10.7%
5.3%

Oil Palm Estates
23.2%
19.8%
21.0%
8.2%
25.6%
30.0%
1:1
1:1
1:1
1.2:1
0.8:1
1:1
17.2%
30.5%
24.2%
24.6%
26.3%
24.1%

Figure 1: Labour-related statistics in a sampling of RSPO Certified Units (2021)

Statement from the RSPO Secretariat on
Decent Living Wage, ambition and progress

Additional note from the RSPO Secretariat: As work on Decent Living Wage progresses, we hope to develop a specific Impact Indicatorfor DLW, given its strong linkage with SDG 1 (end poverty in all its forms everywhere) and SDG 10 (reduce inequality within and among
countries) as identified through the RSPO Impacts-SDG mapping (see Appendix 1, pg 76)

Data from a sample of 206 P&C Metrics Templates
has been adapted to further illustrate genderdemographics in certified plantation estates andmills (Figure 1). As the dataset is incomplete, weare referencing these numbers indicatively. On a
distribution level, a significant proportion of women
are included in estates, at 21% globally and as highas 30% in the Rest of the World (Thailand, Cambodia,
Papua New Guinea, the Solomon Islands and Sri
Lanka). At mills, women form 7.5% of the workforce,going as high as 11% (Malaysia). Many roles at estatesand mills are physically demanding, and traditionally
this has led to a higher proportion of male workers insuch roles. Studies from Malaysia2 and Ghana3 show
female workers roles at estates focus on loose fruit
collection, fertiliser/pesticide application, weeding andtending of seedlings. This inherent structural genderbias is common not only in palm oil, but other agrocommodities, but No Discrimination policies ensurethat any role is open to both women and men, who
can meet the physical demands and skills required.

Expressed in million injuries per man hour, in line with the International Labour Organization (ILO) guidance on measuring occupational injuries.

Raney, T., Anriquez, G., Croppenstedt, A., Gerosa. S., Lowder, S., Matuscke. I., Skoet. J. (2011). The role of women in agriculture (ESA Working Paper 11-02).
Ahmad, A., & Ismail, N. (1998). Gender roles in Malaysian agriculture: implications for extension planning. Journal Of International Agricultural And Extension
Education, 5(1). doi: 10.5191/jiaee.1998.05102
3
Sarku, R. (2016). Analyses of gender roles in the oil palm industry in Kwaebibirem District, Ghana. International Journal of Humanities and Social Science, 6(3).
Retrieved from https://www.researchgate.net/publication/319173770_Analyses_of_gender_roles_in_the_oil_palm_industry_in_Kwaebibirem_District_Ghana“Indicator 6.2.6 of P&C 2018 shows the commitment
of RSPO members to pay a decent living wage (DLW)
for their workers. We have been supporting membersin their effort to comply with DLW requirements
through developing guidance, socialisation andtraining. As a result, members have been encouraged
to take a step towards DLW, such as assessing theirworkforce’s prevailing wages and exploring existing
benchmarks. But we also understand that this is not
sufficient and it is important to continuously provide
similar support until DLW becomes a norm in thepalm oil industry. The RSPO Secretariat, together with
the DLW task force, endeavours to further develop

potential benchmarks. In the process, we haveencountered several challenges that have createdimportant learning experiences. Moving forward,
RSPO will take a stepwise approach that enables better
identification of members’ needs and provide thenecessary support to them, while developing a systemthat enables concrete measurement of progress
towards DLW and, in the future, its impact on poverty
alleviation and economic inclusivity.”
Ayelech Tiruwha Melese
Manager, Decent Living Wage

Within certified
estates and mills,

femaleworkers receive
training in equal
proportion tomale workers

1
2

6

22

Impact Report 2022

Impact Report 2022

23

No Discrimination policies can also achievea level of gender balance in the training
opportunities offered to staff. Criteria
3.7 requires all staff in certified units tobe appropriately trained; combined with
Criteria 6.1, this implies equal accessto training by gender. The data here isencouraging. In estates, women andmen are equally trained in proportion totheir demographic distribution. In mills,
it appears that for every male trained, 2females receive training, skewed higher
by a 3:1 ratio in Malaysia. Situationally,
this could be because women in mills
tend to work in office roles with a broader
spectrum of training requirements.
In terms of contributing to women’s
empowerment, the percentage of females
in administrative roles at estates is 24.2%,
and 12.1% in management roles at mills.
Although there are no known studies on
the subject to compare these statistics
to, RSPO does note a recent increase in
our members publicising women being
appointed to managerial positions in mills
and estates (especially in Indonesia andMalaysia), some citing the work of internal
Gender Committees (stipulated in P&C
Indicator 6.1.5).

The story of Joyce Silva da Rosa,
partner farmer of Agropalma GroupIn January 2019, Joyce arrived in Vila Palmares, a
district of Tailândia, Pará in Brazil. She was determined
to manage the 98 hectares (ha) of land owned by her
mother, Marlene Silva da Rosa, of which 48 ha wasplanted with oil palm. As the granddaughter of farmers
in Rio Grande do Sul, Joyce had always been interested
to work in agriculture. “But I never imagined it would
be in oil palm.”Credit: Agropalma

As this is the first time RSPO is analysing
gender data within certification, weview this baseline data as encouraging
and progressive. It implies that RSPO
certification, through our Principles &Criteria, has already achieved a levelof gender parity in terms of equal
opportunities for vocational training,as well as improved opportunities forleadership, which are directly connectedto three Sustainable Development Goals
targets: SDG 4.3 (equal access by genderto technical, vocational and tertiary
education by 2030), SDG 4.4 (eliminate
gender disparities in technical, vocational
and tertiary education by 2030) and SDG
5.5 (ensure women’s full, effective andequal participation and opportunities
for leadership). For more information on
RSPO Impact Indicators and SDGs, please
see the chapter on Mapping RSPO Impacts
and UN SDGs (Appendix 1, pg 76).
As our dataset on gender aspects
is developed and refined, we will
be codifing the data into a Gender
Index, using weighted components ofparticipation/inclusion, equal access andempowerment. As RSPO standards evolve,
more components may be added. The
potential to use this Index as a baseline, atrendline or indicative informative has notbeen determined. But it is clear that palm
oil provides benefits for women, and RSPO
requirements through certification havecreated a level of positive impact on somegender issues which we believe will leadto further improvements.

24

Impact Report 2022

If asked before about her biggest hurdle in the
sector, Joyce would have previously mentioned thetwo seasons in Pará – one with a lot of rain and one
with no rain at all – two extremes that could cause
cultivation problems. Today, however, she feels that
her biggest challenge is finding qualified labour,
primarily men, that can accept working under awoman’s leadership. “There is still prejudice by malefarm workers just because I am a woman who leads
and manages all the activities on the site, including
palm cultivation.”

Despite these challenges, Joyce has increased herland productivity from 26 metric tonnes (MT) per ha
per year to 28 MT/ha/year in just two years. By 2022,
she hopes to achieve 30 MT/ha/year. She believes
that goal is achievable, after receiving encouragement
and technical assistance from Agropalma Group(RSPO Member ID: 1-0003-04-000-00) which supports
women farmers like her.
Joyce is now considered a role model for small
farmers, praised by auditors in a recent RSPO
certification audit. Moving forward, Joyce intends
to acquire an additional plot of land to expand. She
hopes she can maximise productivity and increase
income, while proving that women like her can thrive
as excellent leaders in the oil palm sector.

A look at…. ‘Oil Palm Mamas’ in Ghana
Beyond the RSPO P&C, there is also scope to look at
gender issues through female entrepreneurship andinstitutional positions in trade - see the so-called ‘oilpalm mamas’ or ‘market queens’ in Ghana. Called
ohemma (market queens) in the Twi language, they
are a naturally occurring trader structure present infresh food markets, particularly rural ones, studied in a
Wageningen University paper4. The operators of eachproduce (almost always women) form unspoken tradeassociations by crop, electing a Queen Mother to act
as their leader5. This informal collusion acts as both acooperative and a cartel, ensuring price stability andproviding micro-financing through informal credits,
but also serving as barriers to entry for non-affiliatedtraders.

Credit: Uzabiaga/Wikimedia Commons/
CC-BY-SA 4.0

These ohemma are connected to palm oil beyond
merely trading the fruit. Some are small-scale oil palm
farmers, while others buy directly from farmers orintermediaries, or act as intermediaries themselves.
Palm fruit is also not their only product; throughnetworks of cooperation linked by ohemma, there
are informal female-led artisanal palm oil mills that

produce unrefined red palm oil. These mills are almost
self-organising with different structures dependingon location; in some, women take turns to operate
the semi-mechanised mill independently by hand
and, in others, process fruit into oil collectively. Men
occasionally participate in such groups, but these arelargely female-dominated, in numbers between 5 to
22 workers. The oil is also sold at markets, as a key
ingredient in traditional dishes such as palm oil chopor red red stew.
Organised and thriving, these women groups are notexactly independent smallholders but not licensed
processing operations either. They have offeredwomen in Ghana and West Africa an informal chance
to reap benefits from palm oil that is not, at present, inthe formal industry. In their own corner of the palm oilworld, such women hold the power and presence todictate quality and police their products; in one known
case, an ohemma suspected a new seller of offeringstolen goods and when subjected to questioning, herinstincts turned out to be right.

4
Ayisala, A. (2011). An analysis of the price setting mechanisms in the palm oil industry in Ghana (Master’s thesis, Wageningen University, Netherlands).
Retrieved from https://edepot.wur.nl/176517
5
Amusingly, a market’s collective Queen Mothers will also choose a Supreme Queen Mother, to act as their highest authority and make decisions withexternal parties on their behalf. Traditionally, this has been the Queen Mother of Yam. ‘Thrones’ are held until death.

Impact Report 2022

25

These insights are instructive. As we gain a better
understanding of human rights risk and regionalvariations, RSPO will be able to assist our members
to address such risks, as well as provide guidanceto CBs on specific issues to focus on during audits.
Complaints data is also planned to be used withhuman rights-related Non Compliances (NCs)

HUMAN RIGHTS RISK

reported through RSPO audits by scale and byregion to gain a fuller understanding of RSPO’s
Human Rights Risk; when development is complete,
this Impact Indicator will be able to express thelikelihood of human rights issues arising within
our membership quantitatively. This will then beassessed internally to lower that likelihood.

PEOPLE

It is challenging at any given time to measure thepresence of human rights compliance in oil palm
plantations. Within the SDGs, this is seen throughperception; for example, indicator 10.3.1 assesses the‘proportion of population reporting having personallyfelt discriminated against or harassed…’. In RSPO
certification, human rights aspects are addressed
through P&C audits by independent third-party
Certification Bodies (CBs). The focus is mainly on
Principle 4: evaluating requirements to establish
policies and mechanisms on upholding human rights
Human Rights, Labour. FPIC and Social
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Indonesia

including protection for human rights defenders(Criteria 4.1), establishing grievance mechanisms torecognise complaints and enable access to remedy(4.2), Free, Prior and Informed Consent (FPIC, (4.4
and 4.5) and the rights of indigenous people and local
communities to their land (4.6). Human rights aspects
are also embedded within Principle 6. However,policies and procedures are not enough to capture
the broader picture of human rights in practice.
Inversely then, is it possible to measure the absenceof human rights?
Indonesia

Other Cases

Malysia

Latin America

Africa

ROW

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Latin America

Credit: RSPO, Jonathan Perugia

Despite a global pandemic, RSPO has been actively
involved in initiatives that enhance the benefitsof sustainable palm oil for local communities andworkers. Since 2019, in collaboration with Sabah
Environmental Protection Association (SEPA), we haveconducted the Community Outreach Programme
Land

Labour

It is. RSPO provides a mechanism to address complaints
against members through our Complaints System.
An impartial and transparent process that provides
stakeholders with an avenue to address grievances,
the Complaints System was established in 2009 andstrengthened in 2017 with the implementation of theComplaints and Appeals Procedure (CAP). Focusedon independence, transparency and credibility, thesystem has accepted 165 official complaints to date.
A complaint is accepted if the allegations, if proven to
be true, would amount to a breach of the RSPO Key
Documents1. Cases are catalogued by category, withsome linked to multiple categories. Using Complaints
data to evaluate the incidence of human rights-relatedcases (including Labour, Social, Gender and FPIC/
Land), we can begin to better understand risk levels
associated with human rights within RSPO.

Of the 165 cases submitted to date, 64% involved
human rights aspects. This risk appears to be morecommon in certain regions (Figure 1). Categorically,
allegations concerning FPIC/Land show a highincidence (Figure 2), although Labour and Human
Rights issues are also apparent. These cases are
addressed by the RSPO Complaints Panel - anindependent multi-stakeholder body mandated by the
RSPO Board of Governors to deliberate and decideon cases. Some 78% of Human Rights and SocialStandards (HRSS)-related cases have been closed.
Closures vary by region and category (Figure 3),
with data for open cases indicating a higher level ofhuman rights-related risk in Latin America, Africa andIndonesia.

Malaysia
75%
75%
N/A
80%

Latin America
89%
50%
N/A
57%

Africa
70%
100%
N/A
100%

Figure 3: Closure rates of HRSS-related cases by by region

Impact Report 2022

ROW
100%
100%
N/A
100%

In Indonesia, we carried out two key programmes:
Independent Smallholder Outreach (in partnershipwith FORTASBI) and Community Outreach (withthe Institute for Policy Research and Advocacy[ELSAM]). Here, we focused on disseminating crucial
information on sustainable palm oil by convening local
communities, indigenous peoples, trade unions, local
NGOs and smallholders for productive collaboration.
Some on-the-ground impacts from these initiatives areheartening: two smallholders in South Sumatera told
stories of how RSPO certification improved yields andlowered maintenance costs, allowing them to support
their village with rural rehabilitation activities, newschool facilities, better health and safety measures,and inspiring food distribution for the underprivileged.

Human Rights
and Gender

Figure 2: Human rights-related cases by category as a percentage
of total human rights-related cases2

Indonesia
82%
72%
100%
77%

in Malaysia, running 44 workshops in Sabah, 12 inSarawak and 19 in Peninsular Malaysia. Through this,we have extended RSPO’s outreach to intermediaryorganisations (IMOs) and affected parties, bridging the
gap between communities and worker entities’ access
to RSPO and our systems.

ROW

Figure 1: Human rights-related cases as a percentage of total
Complaints cases

Land
LabourGenderHuman Rights

26

Malaysia
AfricaOur community wellbeing efforts

Grand Total
81%
72%
100%
77%

RSPO perspective on forced labour
The recent reporting of labour issues within thepalm oil sector, compounded by the imposition ofregulatory sanctions against some RSPO members, hasbrought to fore the issue of forced labour. P&C 2018
contains a clear prohibition on the use of forced ortrafficked labour (Criteria 2.2 and 6.6) but recognisingthat this issue cannot be addressed alone, RSPO
engaged with the International Labour Organization(ILO) and Malaysian Palm Oil Association (MPOA) in
October 2021 to discuss labour-related issues andchallenges faced by the industry. This engagement
included important discussions on the identificationand verification of recruitment fees, and the needfor better engagement between the industry,
governments and workers when translating standards
into action.

With the ongoing Standards Review process, we aim
to improve RSPO’s alignment with international labour
standards, such as ILO and International Organization
for Migration (IOM), including the 11 ILO Indicatorsof Forced Labour, contextualised for the palm sector.
To build capability and provide further guidance,
the Labour Sub-Group of the Human Rights Working
Group is working on developing efforts on labour
rights training, social dialogue and recruitment fees
identification and remediation.
Leena Ghosh
Head, Human Rights and Social Standards

Including but not limited to the RSPO Principles and Criteria (P&C), Code of Conduct and Membership Rules.
Complaints cases may fall under multiple categories. The number of HRSS cases by category presented here captures all cases associated with a specificcategory, not the unique number of cases.

1
2

Impact Report 2022

27

INCLUDING
SMALLHOLDERS
The first targets within the Sustainable Development Goals (SDG) touchon extreme poverty (SDG1.1) and national poverty (SDG1.2), as well asbasic services and land rights (SDG1.4). These issues are very pertinent
to the people that RSPO is best-positioned to help: smallholders. In
Malaysia, 13.6% of oil palm independent smallholders (ISH) are families
living in poor social and environmental standards, earning RM1600 per
month or well below the national poverty line of RM2,2081. Researchin Cameroon found that smallholders who invest in oil palm could
earn US$7-14 per day more than those that do not, way above theinternational poverty line (US$1.90 a day)2. A recent study in Jambi,Indonesia concluded that smallholder oil palm cultivation provides
significant income gains, and also improves long-term family living
standards through better nutrition, health and (especially) education3.
RSPO certification can confer even broader impacts, and we will examine
how in this chapter.

Growing oil palm can raise a family out of poverty in one generation.
However, for this to happen smallholders need to receive a fair pricefor their crops. RSPO plays a role in this by promoting fair treatment
and pay of smallholders. Criterion 5.1 requires a unit of certification(usually the mill) to deal with smallholders fairly and transparently. Thisrequirement explicitly includes indicator 5.1.3 which specifies that the
FFB pricing is agreed with smallholders.
Marieke Leegwater
Co-Chair of the RSPO Smallholder Standing Committee (SHSC),
representing Solidaridad

Rahman, S. (2020). Malaysian independent oil palm smallholders and their struggle to survive 2020.
ISEAS Perspective, 144.
2
Ayompe, L., Nkongho, R., Masso, C., & Egoh, B. (2021). Does investment in palm oil trade alleviate
smallholders from poverty in Africa? Investigating profitability from a biodiversity hotspot, Cameroon.
PLOS ONE, 16(9), e0256498. doi: 10.1371/journal.pone.0256498
3
Chrisendo, D., Siregar, H., & Qaim, M. (2022). Oil palm cultivation improves living standards andhuman capital formation in smallholder farm households. World Development, 159, 106034. doi:
10.1016/j.worlddev.2022.106034
1

28

Impact Report 2022

Credit: RSPO andCredit:
Sayan RSPO,
Chuenudomsavad
Ernst Young

Impact Report 2022

29

SMALLHOLDERPARTICIPATION

After applying the best management practices taught
to us during the training programme funded by RSSF, I
saw an increase in my FFB production. Since joining (thesmallholder group), I also understand how to use fertiliser
and how to spray. We learned how to care for our oilpalms; before we used to do our work without thinking. My
smallholder group also gives opportunities to women; outof 21 members, 14 are women.

RSSF Testimonial #1

Delfrida Marbun

PEOPLEPROSPERITY

Asosiasi Pekebun Swadaya Kelapa Sawit Labuhanbatu(RSPO Member ID: 1-0273-19-000-00)

PLANET

that they sell to nearby palm oil mills. They usually
have two choices of business models: entering into a
direct contract with a mill2, or maintaining autonomy
as free agents. The latter are defined by RSPO as
Independent Smallholder (ISH), covered by the RSPOISH Standard that has adapted and simplified thePrinciples & Criteria (P&C) specifically to include
more smallholders.

To benefit them, RSPO must first engage with oilpalm smallholders. Because of a general lack ofaccess to expertise, infrastructure and finance,
supporting smallholders towards certification canbe time-consuming. Defined within RSPO as farmers
with 50 hectares (ha) or less of oil palm production
area1, smallholders derive their principal source ofincome from harvesting Fresh Fruit Bunches (FFB)
Total Funding
Approved(US$)

2013-2021

Total Funding
Disbursed
(US$)

RSPO
RSPO
Membership Certification(ISH Group) (of ISH Group)

4,027,081 2,630,694

111
ISH
groupsfundedby RSSF

Benefiting

6351%(53%)357%(71%)3

Certified
ISHgroupsfundedby RSSF

Certified
ISHsCertified
Production
Area

Certified
FFB
Production

22,01765,603

987,869

71%

69%

64%

38,597 (66 Projects)

57

36

15,68045,064 633,036

Indonesia
Malaysia
Latin America
AfricaROW

13,548 (34 Projects)
748 (3 Projects)
5,588 (9 Projects)
14,519 (6 Projects)
4,194 (14 Projects)

26
3
5
11
12

20
3
0
1
12

5,980
1,324
4,983
3,393

13,902 230,669
6,225 90,338
8,667 12,488
16,270 299,542

Figure #1: RSSF funding for ISH groups and resulting impact on ISH certification

Our first mechanism is the RSPO Smallholder Support
Fund (RSSF). Initiated in 2013, RSSF provides monetaryassistance to ISHs pursuing certification, reducing
cost implications through three categories of funding:
Certification, Audit and Impact. The RSSF receives anannual allocation of 10% of revenue generated fromthe trade of Certified Sustainable Palm Oil (CSPO) andhas been aligned with the RSPO Smallholder Strategy
mandated in 2017. Between 2013 and 2021, US$4.03
million was approved under RSSF to help 38,597 ISH
across 12 countries (Figure 1), of which US$2.6 million
has been disbursed.

30

Impact Report 2022

RSSF Testimonial #2
I feel more secure now after having understood theimportance of land documentation, something that I
knew nothing about before the (RSSF-funded) project
started. I now can distinguish the difference between
a landowner and a land user, which is now madeclear through the land rights document.
Abdulai Gbla

Ngoyaï Gbaayegie Farmer Based Organisation
under Natural Habitats Europe-Africa B. V.
(RSPO Member ID: 2-1017-19-000-00)
Credit: Lahai Jenkins, Nedoil Ltd

RSSF Project

However, the path from first engagement tocertification may be a lengthy one. For example, if
an ISH chooses to pursue certification, he or she
must form a group with other farmers to have theorganisational capacity and scale for compliance. Thattakes time, which is why RSPO’s involvement withassisting ISHs begins even before membership.

Credit: APSKS Labuhanbatu

RSSF can generate positive impacts from the outset;
a 2015 Solidaridad West Africa project partiallyfunded by RSSF to provide Best Management Practice(BMP) training to smallholders across four reportedly
poorly maintained farms in Nigeria led to a neartripling of FFB yields from 2.7 MT/ha to 7.4 MT/ha,
without the use of inorganic fertilisers. RSSF projects
are also a strong avenue with eventual engagement:
51% of all current RSPO ISH groups and 57% of
all certified ISH groups received RSSF funding for
certification or audit-related projects3. This differential
appears to imply that RSSF-funded ISH groups havea quicker velocity towards certification, ‘hitting the
ground running’ through the pre-membership andpre-certification projects covered by the fund.

Productivity levels of RSSF-funded certified ISHs,
however, do vary. Thai ISHs received only 5.8% offunds but have significantly higher yields (measured
in FFB/ha and FFB/farmer) than any other ISH groups.
RSSF’s focus on Indonesia has led to increasing
participation with good land yields (FFB/ha) althoughproductivity per farmer is weaker (FFB/farmer),possibly linked to multi-cropping. Overall, RSSFsupported ISHs form 71% of all certified ISHs, yet witha lower share of certified production area (69%) andcertified FFB production (64%). This seems to imply
that while RSSF expands the reach of ISH participation
in RSPO certification, smallholder productivity levels
are also driven by other factors. We will discuss
this trend in the next section (See Smallholder
Certification, pg 33).
Moving ahead, the nature of RSSF itself is also
evolving. While the original objective of the fund wasto prepare ISHs for certification, a new approach for
RSSF was endorsed in June 2022 to align the fundwith the first two objectives of the RSPO Smallholder
Strategy. Objective 1 of the Strategy is to improve
livelihoods, through funding for capacity development
towards sustainable practices and ease an ISH group’stransition towards certification. Objective 2 is focusedon certification, funding ISH groups not only towards
initial RSPO certification but also in maintaining
certification over the long-run through a focus on

improving production practices to boost income andoffset costs related to certification. Objective 3 isfocused on market access, as an operational focus
by the RSPO Secretariat to build partnerships withstakeholders across all RSPO membership categories
to support smallholders wherever they may be. Aspart of the new RSSF framework, RSPO has committed
to approving US$1 million annually to support
increased ISH participation over the next three years
beginning 2022.
To complement the financial assistance, RSPO also
provides training through the RSPO Smallholder
Trainer Academy (STA) launched in November 2019.
Supported by partners, STA provides a series oftraining modules for smallholder group managers andindividual smallholders through a unique ‘train-thetrainer’ approach. This aims to build a pool of Master
Trainers across sectors and organisations to form a
global community to promote sustainable palm oilpractices through smallholder training. STA includes
a range of topics around sustainability, available insix languages (English, French, Indonesian, Malay,
Spanish and Thai). Although interrupted by COVID-19,
RSPO conducted 179 STA trainings by 2021 (Figure 2)
physically and virtually in eight countries, empowering
9,391 participants with a priority on including womensmallholders as well (40% of all participants).

Unless defined otherwise through the National Interpretation (NI) of the RSPO P&C, which provides a local adaptation of the standard based on domestic
cultural or legal differences e.g., the Indonesia and Ecuador NIs define the threshold for smallholders as below 25 ha and below 75 ha, respectively.
2
Known as scheme smallholders. If contracted with an RSPO certified mill, they are covered by the P&C requirements applicable to the mill as its supply base,including provision of support, training and fair dealing.
3
Including the nine groups undergoing certification in 2022, 71% of certified ISHs are connected with RSSF. Two groups joined as members in 2022, increasing
RSSF representation in RSPO membership to 53%.
1

Impact Report 2022

31

Category of Training
Group Manager Training

7

Smallholder Training

154

Training of Trainers

18

Total

179

Country
Malaysia
Colombia
MexicoIndonesia
Malaysia
Ghana
Thailand
MalaysiaDem. Rep. of Congo
Côte d’lvoire
ThailandNo. of Trainings
5
1
1
10
28
2
114
5
1
3
9

Participants
121
18
33
1,840
996
83
5,601
80
5
76
538

% of female participants
28%
33%
12%
23%
29%
30%
48%
16%
40%
11%
40%

179

9391

40%

Figure #2: STA trainings conducted by region (2019-2021)

Oil palm smallholders and where they are
To be able to engage smallholder farmers, we needto know where they are. There is no known resource
providing a concrete estimate of smallholders involved(fully or partially) in oil palm globally. On a national
level, data availability varies considerably. In absenceof independent statistics, RSPO is providing our own
estimate on the global distribution of smallholders4.
We estimate that there are at least 7 million
smallholders that earn a living (fully or partially) fromoil palm worldwide. Some 3.3 million are locatedin Indonesia and Malaysia, where data is strongest.
In Thailand, over 364,000 smallholders represent
more than 70% of the area planted with oil palm
(concentrated in the southern provinces aroundthe Isthmus of Kra). Indications for Latin America
provided by national sources or social development
organisations appear to be fairly reliable, but does notcover all countries in the region.

Africa is where the variability in data is mostconsequential. Existing research papers and studies
on African smallholders focus almost solely on
production yields. When smallholder numbers
are mentioned, the data may not be fully distinct
as it may be in the number of groups rather thannumber of farmers, or where differing sources forthe same country provide a formidable contrasting
range5. Because of this variability in the data, RSPO’s
estimates should be taken as conservative figures. As
we expand our work with smallholders worldwide, wewill be in a position going forward to provide better
statistics on oil palm smallholders as we work on
improving their lives and livelihoods.

SMALLHOLDERCERTIFICATIONPEOPLEPROSPERITYPLANET

Between scheme smallholders working in fixed
partnership with certified palm oil mills andindependent smallholders (ISH) that have joined
as members, RSPO certification has now expanded
to include over 165,000 farmers in 14 countries.
Collectively, RSPO smallholders operated an area ofnearly 417,000 hectares (ha) to produce an estimated
8.68 million metric tonnes (MT) of Fresh Fruit
Bunches (FFB) in 2021. While there are still many

RSPO estimates that there are at least 7 million smallholders
associated with palm oil worldwide

more that could benefit through RSPO, here is anidea of our smallholder scale1 so far:● 165,462 smallholders, or more than the populationof the U.S. island territory of Guam
● 416,791 ha of land, or more than the entire oilpalm production area of Ghana● 8,677,814 MT of certified FFB, potentiallyrepresenting 2% of global palm oil production

Scheme only
ISH only
Scheme/ISH

SchemeIndonesia
Malaysia
Latin America
AfricaROW

Malaysia~650,000
Latin America~150,000~3.1 million~2.7 million

ROW~450,000

Figure #4: Estimated number of smallholder farmers involved in oil palm by region

Using data from national sources, industry bodies or extrapolated data calculated from related statistics in published research studies.
Unverified sources for smallholders in Nigeria, for example, range from 1 million in a corporate report to 4 million in a media interview. RSPO numbers fordata-deficient countries are extrapolated from known proxy data on total hectarage, average yields, average area per smallholder or other related data.

4
5

32

Impact Report 2022

Certified FFB Production

No. of farmers

351,188
208,707
5,948
78,723
2,492
55,3187,564,974
5,182,474
121,996
1,501,511
30,783
728,210

143,445
119,856
30
1,708
899
20,952

Independent
22,017
1,234,836
65,603
Indonesia
10,953516,936
26,839
Malaysia
1,324
112,922
6,225
Latin America
Africa4,983
15,610
8,667
ROW
4,757
589,368
23,872
Total
416,791
8,799,810
165,462
Smallholders
Figure #1: Distribution of RSPO certified smallholders (scheme, ISH) and statistics

Indonesia

AfricaCertified Production Area

Population of Guam: 153,836 people (U.S. 2022 census); Palm oil production area in Ghana: 360,000 ha (Oil Palm Development Association of Ghana/
OPDAG); Total palm oil production in 2021: 75.9 million MT, potential ISH palm oil output calculated using a lower yield (18%) than the average RSPO Oil
Extraction Rate (OER, 22%).

1

Impact Report 2022

33

Based on ACOP 2021 reporting, there are an additional
7,007 ISHs and 413,577 ha of scheme smallholder areathat have yet to be certified (primarily in Indonesia,
Malaysia and Thailand). This gives us an idea of
where RSPO smallholder efforts could go, which could
potentially double the size of certified smallholder
area through current membership alone. As noted in
the previous section (see Smallholder Participation,
pg 30), a smallholder farmer’s journey towards
compliance and certification can be lengthy. But there
are insights from engagement and analysis that canhelp us strengthen that.
RSSF funding has brought nearly 15,700 ISHs into the
RSPO ecosystem, and it is key that this continues.
However, institutional support and organisational
partnerships are also very important. The ground-level
work of RSPO downstream and development-focused
members (such as Unilever, The Procter and Gamble
Company, Solidaridad, World Resources Institute, The
Proforest Initiative, Wild Asia Group Scheme), systemic
support of RSPO growers who have smallholders
within their sphere of influence, and non-member
partners (such as SNV, GIZ, government agencies)
has been instrumental in our smallholder progress sofar. This is particularly true in Indonesia, where thesupport of local partners like FORTASBI and Setara
Jambi has been crucial in identifying, engaging andequipping independent smallholders.
Our data indicates that the connection between thisintent or support and smallholder progress is strong.
For scheme smallholders, RSPO growers that havecertified some or all of their scheme smallholders arealso associated with higher levels of total certified
area and total Certified Sustainable Palm Oil (CSPO)
production. A look at the productivity levels of ISHs
also shows an indicative pattern, where higher yields(FFB/ha) are broadly linked with a mature level of
support from RSPO members and length of RSPO
certification. This infers that while encouraging
smallholder participation in RSPO is important, it isequally as important to continuously support our ISH
groups to increase their productivity so that they can
improve their livelihoods in the long-run. This is also agoal of the revised RSSF approach.
Beyond palm oil mills, which are the most immediate
point of engagement for oil palm smallholder
farmers, other RSPO members in the supply chain
also support smallholder farmers directly. Whilesome do fund programmes to engage and assist
independent smallholders privately, the most common
form of support comes from the purchase of ISH
Credits³. In 2021, a total of 138,555 IS-CSPO Credits
were purchased and claimed by downstream RSPO
members, with each IS-CSPO Credit representing one
metric tonne of palm oil. Historically, uptake of ISH
Credits has been very strong, with most, if not all, ISH
Credits made available purchased for near-full uptake.
Of these Credits, the vast majority were claimed forusage in Europe; in 2021, more than 90% of IS-CSPO
Credits claimed were in Europe, spread across 18
countries, followed by North America at over 5%, andalso some support in Brazil, Japan and Thailand.

Certified scheme
and independent

smallholders
operate anarea the size of
416,791 ha,Coming home - the firstindependent smallholders
in Africa are certified
The first ISH group in Africa, where oil palm
originates, has been certified by RSPO. Supported
by RSSF funding, the Ngoyaï Gbaayegie Group in
Sierra Leone was certified to Milestone B (or fullcompliance) of the RSPO ISH Standard in August 2021,
and is the single largest ISH group across all regions
to date with 4,983 farmers. Goldtree Sierra Leone Ltd
acts as its Group Manager.

more than the oilpalm production
area in Ghana

Thailand is a striking example of how successful RSPO
smallholder certification can be. Certified ISH groupsin Thailand have FFB yields per hectare far higher
than average smallholders or even some commercial
plantations. The best-performing Thai ISH groups
show a commonality, either being long-established(since 1968 for one group) or supported symbioticallyby nearby independent palm oil mills, to which theysell certified FFB to. In Thailand’s Tapi River basin- covering the provinces of Surat Thani, Nakhon Si
Thammarat and Krabi where 60% of Thai palm oil is
produced - 13 RSPO certified ISH groups represent
over 5,300 farmers who supply some 317,000 MT of
FFB to 11 certified independent mills. At this landscapelevel, where RSPO represents only 11% of palm oil
supply, both certified farmers and mills have better
waste practices, lower fossil fuel usage and advanced
water management, potentially emitting 21% (FFB)
and 97% (palm oil) less greenhouse gases than if they
were not certified2.
As role models of certification, progress recordedby Thai smallholders is encouraging. In 2022, RSPO
signed a Memorandum of Understanding with theprovince of Surat Thani to scale those achievements
up into a national example for sustainable palm oil
for Thailand as a whole. The specific traits of theThai independent smallholder evolution may not
be replicable completely elsewhere, but it does
underscore the importance of experience, funding
and guidance in not just certifying smallholders but
enhancing them as well. These are mechanisms thatare already in place at RSPO, and further development
will be key to our ambition of advancing certificationfor oil palm smallholders.

Credit: Goldtree Sierra Leone Ltd

The impact of RSPO Credits
on ISHs in Indonesia

Credit: RSPO, Jonathan Perugia

Once certified, ISH groups may sell their FFB at apremium physically to a mill or as RSPO Credits3.
While ISHs in Thailand and Malaysia sell some 90%of their FFB as physical certified, ISHs in Indonesia
depend predominantly on credit sales (65% of FFB
volumes) as proximity to certified mills is often
a challenge. This is where RSPO members in thedownstream supply chain can step up, to interact
directly with those in most need of help, encouraging
and rewarding ISHs on their sustainability journey.
Here is how choosing ISH Credits has transformed
lives in Indonesia:• Used to support local communities with basic foodnecessities (rice, cooking oil) and fertiliser during the
COVID-19 pandemic- Asosiasi Petani Kelapa Sawit Mandiri,Central Kalimantan• Conserved and restored a 500 metre span of thePengabuan River as a restricted fish sanctuary toreverse declining populations of endemic species- Usaha Bersatu/FPS MRM, Jambi• Some 60% of credits revenue allocated toencouraging new smallholders to join and topurchase health and safety equipment for them
- UD Lestari, North Sumatera• Built a dam that became the Agrowisata Educationwaterpark, now a popular attraction in the district,and promoting more agrotourism efforts- KUD Tani Subur, Central Kalimantan• Improved rural roads, upgraded local kindergartensand provided rewards for excelling students, as wellas the purchase of high-quality palm seedlings- KUD Sumber Rejeki, South Sumatera

Field testimonials - the voiceof certified Thai smallholders“We have consistently had high yields each year,
as a result of our adjusted farming approaches
which provide proper, continuous care. Spreading
palm fronds on the ground has helped add organic
matter and moisture in the soil, prevent erosion, andadd nutrients to palms, further enhancing fertiliser
efficiency. We recognise that increased productivity,
higher income, larger profits, and better health can all
be attained without paying additional costs.”
Community Enterprise Group - Suratthani(RSPO Member ID: 1-0122-12-000-00)

Credit: RSPO, Sayan Chuenudomsavad

Saswattecha, K., Kroeze, C., Jawjit, W., & Hein, L. (2015). Assessing the environmental impact of palm oil produced in Thailand. Journal Of Cleaner
Production, 100, 150-169. doi: 10.1016/j.jclepro.2015.03.037
3
A specific set of RSPO Credits is available for ISHs, covering IS-CSPO (palm oil), IS-CSPKO (palm kernel oil) and IS-CSPKE (palm kernel expeller), the proportionof which is calculated as part of certification. As credit premiums go directly to smallholders, they generally trade at a higher price on the RSPO PalmTrace
trading platform. http://rspocredits.org/
234

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PROTECTING
AND RESTORING
NATUREThe ideal growing conditions for oil palm, a highly productive cropthat offers a far greater yield at a lower cost of production than othervegetable oils1, coincide with some of the world’s most biodiverse andvaluable ecosystems. Protecting these vulnerable environments, whilebalancing equitable economic growth, is at the heart of RSPO. More thanjust preservation, we also address instances of historic unsustainable
development to not just retain but expand conservation throughenvironmental restoration and rehabilitation procedures. The Principles
and Criteria (P&C) 2018 and RSPO Independent Smallholder (ISH)Standard have set in place an ambitious set of criteria for environmentally
sustainable operations and measures to halt deforestation, supported
by other RSPO mechanisms such as the New Planting Procedure (NPP)and the Remediation and Compensation Procedure (RaCP). With these inplace, RSPO certification will be able to ensure that some of the world’s
most fragile and threatened ecosystems are conserved, protected andenhanced to provide for the next generations.

As a member of RSPO and being responsible by living on this planet
we all call home, it is so important that we use our limited resources
sustainably for the collective good. The BHCVWG was established in 2010
to provide strategic and technical advice to RSPO in support of effective
implementation of the P&C to ensure that biodiversity is preserved andHigh Conservation Value (HCV) areas are protected, while still allowing for
responsible land use to provide food, income and shelter for the billions
of people who share our only planet with endangered species like tigers,
jaguars, elephants, rhino, gorillas and orangutans.
Lee Swee Yin and Harjinder Kler
Co-chairs of the RSPO Biodiversity and HCV Working Group (BHCVWG),
representing Sime Darby Plantation and
Kinabatangan Orang-utan Conservation Programme

136World Wildlife Fund (WWF), a founding member of RSPO.

Impact Report 2022

Credit: RSPO
Credit:and Sayan
RSPO,Chuenudomsavad
Jonathan Perugia

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37

THE RSPO JOURNEY IN
HALTING DEFORESTATION
From our establishment in 2004, RSPO’s ambition
has always been to halt deforestation as part of thesustainable production of palm oil. Since the pilot
P&C was introduced in 2005, we have continued to

implement rigorous requirements in pursuit of thatambition. As we head toward a revision of the P&C in
2023, this timeline captures RSPO’s journey so far inhalting deforestation.

Halting Deforestation Timeline
April 2004
RSPO formally establishedFirst multistakeholder organisation
addressing sustainability in palm oil

November 2007
RSPO P&C 2007

Formal set of requirements (Principle 7) tohalt deforestation

August 2013
Eyes on Haze initiative

Mandatory submission of digital oil palm
concession boundary maps

November 2015
RSPO Remediation andCompensation Procedure (RaCP)

Restoration or Compensation for land clearing
done without prior HCV assessment

March 2017
RSPO Group Membership

Consolidation of subsidiaries under one
RSPO group membership

November 2018
RSPO P&C 2018

Adoption of High Carbon Stock Approach(HCSA), protecting peatlands

June 2021
NPP 2021

Consolidation for consistency with
P&C 2018

SAFEGUARDING
NATUREPEOPLEIn a forest, it is never quiet. There is always asymphony of sounds at play, from the calls of birds
to the buzzing of insects, the soft treads of predators
to the audible growth spurts of plants, the gushingof rivers and the whispers of indigenous people thatcall this green canopy their home. The equatorial belt
contains some of the world’s richest and most diverse

Two-year initial implementation period

January 2010
RSPO New Planting
Procedure (NPP)

New land clearing must undergo prior
HCV assessment

November 2013
RSPO P&C 2013

Formal set of requirements toprotect peatlands

January 2016
NPP 2015

Consolidation for consistency with P&C 2013

June 2017
GeoRSPO

Transparency on RSPO oil palm
concession boundaries

May 2019
RSPO Peat Inventory andDrainability Assessment (DA)

Documentation of all peat areas, planted orotherwise, for responsible management

July 2021
RSPO Hotspot Hub

Figure 1: Distribution of HCV Area by Country in hectares (2021)

Cumulatively through 2021, RSPO members have set
aside 301,020 hectares (ha) of land and forests forconservation (see “A conservation conversation”)
as part of P&C certification. That is an area almost
30 times the size of the city of Paris1. Protected andmanaged by certified plantations and mills, theseareas are distributed worldwide across 17 countries(Figure 1), with the highest proportion of conservation
areas in Indonesia (123,333 ha), Gabon (64,065 ha),Brazil (57,237 ha), Malaysia (19,550 ha) and
Colombia (12,877 ha).

ability to continue safeguarding vital natural forests,
landscapes and ecosystems of environmental andsocial importance.

To place this progress in a historical context, in 2015
the total conservation area of RSPO certified units was
144,967 ha, or 4.2% of the total P&C certified area. In
2021, the cumulative size of conservation areas has
more than doubled, representing 6.6% of the total
P&C certified area. As RSPO certification progresses(see Advancing Certification, pg 62), so too does our(301,020 hectares) has beenconserved and protected
through RSPO certification

1

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forests, including tropical rainforests and vast jungles
where dinosaurs once roamed, and are home tosome of the world’s most iconic fauna and valuable
flora. RSPO was established to ensure that palm oil is
produced sustainably in such a way that these forests
are preserved and do not fall silent.

November 2005
RSPO Principles and Criteria(P&C) pilot

Public digital platform tracking incidence
and actions taken on fire hotspots within
RSPO concessions

38

PLANETAn areaalmost 30 times
the size of Paris

The City of Paris, the capital of France, is 10,540 hectares in size.

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39

Approved area for 86,866
NPP development
ha141,900
ha

3,984
ha

100%

Open land
Grassland

90%

Food crop

80%

Tree crop

70%

Shrubland/
scrub
Forest

60%
50%
40%
30%
20%
10%
0%

Africa

Asia

LatAm

Figure 2: Land profile of areas approved for oil palm
development under NPP (2015-2021)

The New Planting Procedure (NPP) is key to this, andis applicable to all new plantings and land clearing
planned by uncertified management units. Since
2015, some 392,000 ha of planned new plantings
were submitted under NPP, of which 232,750 ha wereapproved for development and 90,595 ha conservedfor environmental or social importance2. Of thearea approved for development, only 2% was on
forested areas (Figure 2) after HCV, HCS or HCV-HCS
environmental assessment was conducted. The mostcommon land profile for development were grasslands
in Africa and Latin America, and shrubland/scrub orother tree crops in Asia.
Going forward, we intend to desegregate our data
even further in order to obtain more insights on thetypes of areas being conserved and what positive
impacts this has led to. Has biodiversity improved?
What unique ecosystems are being preserved?
Which vulnerable communities are being sheltered?
We also would like to be able to share stories fromthe RSPO members’ conservation, reforestation
and rehabilitation efforts, as one of the few forest
commodity voluntary sustainability standards with
criteria for reforestation3. We want the symphonicsounds of forests globally to continue playing for
generations to come, and we want the RSPO and ourmembers to be part of that chorus.

A conservation conversation
Over four iterations of the P&C, RSPO’s approachto halting deforestation has evolved, adding rigour
and clarity at every stage. In current usage are theHigh Conservation Value (HCV) and High Carbon
Stock (HCS) approaches. HCV has been a mainstay
since the 2005 P&C pilot, while HCS was introduced
in P&C 2018. These assessments are mandatory for
new plantings under the NPP, with the addition of
HCS components to protect forests that may not becovered by HCV. Combined, the two complementary
approaches strengthen the ability of RSPO members
to identify, conserve and protect forests, landscapes,
ecosystems and areas important to traditional
livelihoods and cultural identity.

HCVs
that areoutsideof HCS
forests

Stories from the field:
Certification and conservation in Gabon
Forest elephants, lowland gorillas, rediscoveredhippo habitats, and archaeological artefacts foundin a cave that Indiana Jones would have been proudof. The story of Olam Palm Gabon (OPG) – a joint
venture between Singapore’s Olam International(RSPO Membership ID: 1-0114-12-000-00) and theRepublic of Gabon – is a testament to how a strong
commitment to sustainable palm oil can translate intotrue impact.
Covering three mills and associated plantations,
OPG’s total concession is over 200,000 ha in sizeand fully RSPO certified as of June 2022. More thanhalf is conserved as HCV areas or HCS forests (over100,000 ha, including the Dola CPO Mill certified inJune 2022). Beyond just scale, the nature of theseareas is also strategic as the conservation areas within
the Olam concessions are contiguous, connected
to natural habitats and national parks, therefore
playing an important role in landscape connectivity
and integrity on a national level in Gabon. Significant
populations of endangered flora and fauna thrive inthese areas, including recently-spotted hippopotamus
in a region where no sightings had been reported
since 1949. Advanced instruments for the monitoringand prevention of human-wildlife conflict are in place,while local communities are actively engaged.

In 2019, another exciting discovery was made while
Olam was investing in documenting cave networks
in its patrimonial enhancement programme: theIroungou Cave. Containing over 500 artefacts fromthe 14th century (including knives, axes, bracelets
and human remains), the burial site is a uniqueinsight into the largely unrecorded and little-known
anthropological history of Central Africa.

Overlapping
HCS forests
and HCV areas

HCS
forests
that do notcontain
HCVs

Figure 3: Land profile of areas approved for oil palm
development under NPP (2015-2021)

The HCV approach was first developed by the Forest
Stewardship Council (FSC), and is now widely used incertification standards and conservation planning. An
HCV area is of biological, ecological, social or cultural
outstanding significance or of critical importanceat global, regional or national levels, and is broken
down into six categories:
HCV1 (Species diversity): Areas with concentrationsof biological diversity including endemic species,and rare, threatened or endangered (RTE) species,
including temporal importance (e.g., breeding,feeding or migration grounds).
Example: Sundaland tropical rainforests in East
Kalimantan, Indonesia that support at least three
endangered species (Bornean Orangutans, Proboscis
Monkeys, False Gharials), two of which are endemic
to Borneo.

HCV2 (Landscape ecosystems): Large landscape-levelecosystems and ecosystem mosaics that contain
viable populations of the great majority of naturally
occurring species in natural patterns of distribution
and abundance.
Example: The boreal forests of Mistik Forest
Management Area in Saskatchewan, Canada.
HCV3 (Vulnerable ecosystems): Rare, threatened, orendangered (RTE) ecosystems, habitats or refugia.
Example: Humid and semi-arid Pampas ecoregionsin the La Plata basin of Argentina, as grasslands that
support unique communities of over 550 grass and500 bird species.
HCV4 (Ecosystem services): Basic ecosystem services
in critical situations including protection of water
catchments and control of erosion of vulnerable soils
and slopes.
Example: Cork and holm oak woodlands (montados)
and water catchments in the Low Tejo Basin,southern Portugal.
HCV5 (Community services): Sites and resources
fundamental for satisfying the basic necessities of
local communities or indigenous peoples, identified
through engagement with these peoples.
Example: Mosaic landscape in Cabo Delgado
Province, Mozambique.
HCV6 (Cultural values): Sites, resources, habitats
and landscapes of critical cultural, ecological,
archaeological, historical, economic or religious/
sacred importance for the traditional cultures of
local communities or indigenous peoples, identified
through engagement with these peoples.
Example: Culturally and spiritually significant
Pesaguan Dayak small settlements (dohas) in
Tumbang Titi, West Kalimantan, Indonesia.
The High Carbon Stock approach (HCSA) is amethodology and toolkit that sets an internationallyrecognised approach for implementing No
Deforestation in tropical forest landscapes. It
identifies and distinguishes between carbon-richnatural forests that must be protected, and areasof scrub and degraded lands with low carbon
and biodiversity values that may be developed,
whilst ensuring that the rights and livelihoods ofcommunities and workers are respected.

Credit: Olam Palm Gabon

An additional 68,453 ha were assessed to be excluded from the NPP development plan due to the presence of existing agriculture or infrastructure.
Larrea, C., Leal, S., Sarmiento, F., & Voora, V. (2021). Voluntary Sustainability Standards, Forest Conservation, and Environmental Provisions in International
Trade Policy. IISD.
2
3

40

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Going forward, we intend to refine our datasets
to include other aspects such as the extent ofplanting on vulnerable areas, fertiliser inputs andoperational adherence to the standard through noncompliances related to relevant criteria as identified

ENVIRONMENTALSUSTAINABILITY INDEXPEOPLE

Responsible usage of pesticides
According to the United Nations Environment
Programme, pesticides can persist in the environment
for decades after application, posing threats to entire
ecological systems that food production depends
on. Excessive use and misuse of pesticides result incontamination of surrounding soil and water sources,
loss of biodiversity, destruction of beneficial insect
populations and reduction in food nutritional values.
Under P&C Criteria 7.2, pesticides must be used inways that do not endanger the health of workers,families, communities or the environment. This

PLANET

Principle 7 of the RSPO Principles and Criteria (P&C)
2018 sets out requirements intended to conserve,
protect and enhance ecosystems that provide forthe next generation. These include a number ofcriteria on environmentally sustainable practices
for the operation of plantations and mills, including
pest control, pesticide use, waste management,
fertiliser input and renewable energy. The RSPO’s
current dataset on these aspects is incomplete.
However, we do have enough data from a sample of
206 P&C Metrics Templates1 submitted by Units ofCertification (units) to establish a general baseline
for pesticide usage.
Using pesticides to control disease (prophylacticuse) is found, on average, in 2% of certified units,with all cases audited by independent third-party
Certification Bodies (CBs) as being under controlled
circumstances as directed by Integrated Pest
Management (IPM) plans required by P&C Criteria
7.1. Using restricted herbicides and pesticides tocontrol weeds or pests2 is found, on average, in 5.4% of certified units. P&C Criteria 7.2.5 prohibits
the use of such pesticides and paraquat unless in
exceptional circumstances that is validated by a due
diligence process or when authorised by government
authorities. Of the reported incidences of usage,
independent auditors found only one case ofnegligent usage of paraquat where a Non-Compliance
was issued. All other usages were supported bydue diligence with advice from agronomists and/or with approval from government authorities.
Analysis on a sample of audit reports indicates that a
number of certified units had already eliminated theprophylactic use of pesticides, restricted pesticides
and paraquat in preparation for RSPO certification infavour of natural pest control techniques. This data
will be used to continually engage with certified units
on the risk factors to guide our members towards
better environmentally sustainable practices.
At this point, metricated data on other aspects ofenvironmental sustainable practices in RSPO certified
units is not yet fully available. However, through datafrom the RSPO Complaints System, we can assess anindicative level of risk associated with environmental
issues. Of the 165 cases submitted since 2009, 62
concern environmental issues, with cases primarily
concerning allegations on deforestation, High
Conservation Value (HCV) assessments, pollution/
fire and New Planting Procedures (NPP). On a

Prophylactic
Use ofPesticides

WHO 1A or 1B
or Stockholm/
Rotterdam
Convention
pesticides,
or paraquat

2.0%

5.4%

Indonesia

0.0%

Malaysia

4.6%

Latin America

0.0%Africa

8.3%

ROW

0.0%

Indonesia

6.5%

Malaysia

6.2%

Latin America

0.0%Africa

0.0%

ROW

2.0%

regional level, the incidence of such cases is highest
in Indonesia (44% of all cases), followed by Latin
America (40%) and Malaysia (33%). This provides arough geographical sketch of risk levels associatedwith environmental issues that can be used by
RSPO to assist members and provide guidance toindependent Certification Bodies on specific issues tofocus on during audits. Some 79% of all environmentrelated cases have been closed, although closures
vary by region with open cases indicating a broader
level of environmental risk in Africa (33% of cases
remain open), Indonesia (21%) and Malaysia (20%).
Environmental

includes no prophylactic use of pesticides (7.2.4), i.e.,
not used to pre-emptively eradicate pests or disease,
unless under exceptional circumstances. Use ofpesticides categorised as World Health Organization(WHO) Class 1A or 1B or listed by the Stockholm or
Rotterdam Conventions, and paraquat (7.2.5) must be
avoided unless there are extenuating circumstances,
as they are Highly Hazardous Pesticides (HHP) that cancause severe environmental harm and chronic toxicity
to human health.

Tackling pests, diseases and alien species

Figure 1: Pesticide usage in a sampling of
RSPO Certified Units (2021)

100%

through certification audits. When ready, the data
will be compiled, codified and calculated into an
Environmental Sustainability Index to assess the overall
progress on responsible operations by RSPO members.

An effective yet environmentally sensitive approachthrough Integrated Pest Management (IPM) is required
under P&C Criteria 7.1 to manage pests, diseases,
weeds and invasive introduced species. IPM generally
consists of four steps: setting action thresholds (thelevel at which pests become an economic threat),monitoring and identification (beneficial vs. harmfulorganisms), prevention (cost-efficient methods as
first line defences including crop rotation or use ofpest-resistant varieties) and active control (startingwith less risky approaches such as mating-disruption
pheromones or mechanical trapping). In oil palm
plantations, particularly in Southeast Asia, the most

Other Cases

90%
80%
70%
60%
50%
40%
30%
20%
10%

Credit: RSPO and Sayan Chuenudomsavad0%
Indonesia

Malaysia

Latin America

Africacommon pests are insects like bagworm moths, andrats. For bagworms, options include targeted control
through endemic insects (Sycanus sp. also known
as assassin bugs) as natural predators. For rats, theCommon Barn Owl (Tyto Alba) can hunt up to five rats
a night, as well as being a naturally-occurring species
across most of the equator.

ROW

Figure 2: Environmental-related cases as a percentage
of total complaints cases
Introduced in May 2021 as a prerequisite for certification, as stipulated in the P&C 2018. P&C Metrics Templates are verified as part of the RSPO’s
independent certification audit process.
2
Defined in P&C 2018 as pesticides categorised as World Health Organization Class 1A or 1B, that are listed by the Stockholm or Rotterdam Conventions,and paraquat.
142

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WATERSTEWARDSHIPPEOPLE

PLANET

Water is crucial in palm oil, both as a production
input and as a resource affected by the industry’s
operations. Not only is water a necessity in ensuring
the growth of healthy oil palms, it is also a vital partof the process of extracting palm oil from Fresh Fruit
Bunches (FFB) at a mill, which essentially involves
cooking the palm fruit with high-pressure steam toseperate its orange fleshy mesocarp from its sturdy

brown kernel, then pressing the extracted flesh toobtain the oil within. The remaining liquid by-product- known as Palm Oil Mill Effluent - is also deeply
connected with water treatment and freshwater
ecosystems (See “POME and Why It Is Important”).
Our RSPO Principles & Criteria (2018) cover all these
aspects, with the goal of making our members
exemplary water stewards.

Indonesia

Malaysia

Latin America

AfricaROW

Global Average

Freshwater Usage per
CSPO produced(m3/MT)

5.120

5.180

4.680

4.200

5.310

5.050

Freshwater Usage per
CSPO produced(m3/kg)

0.005

0.005

0.005

0.004

0.005

0.005

Figure 1: Estimated freshwater usage per MT/kg of CSPO produced by region and global average

To date, there has been limited research on theimpact of certification on palm oil’s water footprint.
SDG 6 specifically addresses water issues, to ensure
availability and sustainable management of water andsanitation for all. A sample analysis of 206 P&C Metrics
Templates shows the average freshwater use bycertified mills to be 5.05 cubic metres (m³) per metric

Oil Palm - Colombia
Oil Palm - Malaysia
Soybean - Argentina
Soybean - Brazil
Soybean - USA
Rapeseed - Germany
Rapeseed - France
Rapeseed - Spain
Rapeseed - Canada
Rapeseed - USA

tonne (MT) of crude palm oil produced, or 0.005
m³/kg in 2021 (Figure 1). Water foorprints are fairly
similar across all producing regions, but notably lower
in certified mills located in Africa and Latin America.
Due to an incomplete dataset, we note that this initialfreshwater usage footprint is not definitive but may be
used as an indicative baseline.

Cultivation(Foreground)

Cultivation(Background)

Transport/
Collection

Exxtraction(Foreground)

Extraction(Background)

0.00000.00640.17000.14000.00760.08600.21001.11000.01300.06000.00070.00060.00230.00270.00130.00600.00600.00770.01000.01400.00100.00130.00310.00780.00480.00400.00230.00170.00480.00210.00550.0034-0.00900.0003-Figure 2: Inventory of freshwater consumed by various vegetable oils (cubic metres per kg of oil, m3/kg)1

Adapted from Water footprint profile of crop-based vegetable oils and waste cooking oil: Comparing two water scarcity footprint methods, by Caldeira,C., Quinteiro, P., Castanheira, E., Boulay, A., Dias, A., Arroja, L., & Freire, F., 2018, Journal of Cleaner Production, 195. Copyright 2022 by Elsevier. Adaptedwith permission.

A 2018 study led by the University of Coimbra,
Portugal, compared the water footprint of crop-based
vegetable oils using two different impact assessment
methods2. The study concluded that the footprintof various oils (calculated as a Life Cycle Assessment
covering cultivation, transport, collection, extraction
and refining) was highest for rapeseed in Spain andsoybean in Argentina, and lowest for palm in Malaysia
and Colombia under both methods. Palm oil wasnoted to be less “thirsty” due to its lesser irrigation
requirements and reliance on natural rainfall. However,even focusing specifically on the study's analysis on
freshwater consumed in extraction aspects of palm oilas the closest possible parallel (Figure 2), a comparison
with RSPO data is not possible due to differencesin metrics and methodology, though our data fromcertified mills appears to be relatively in line with thestudy’s findings. This implies that the water footprintof certified mills might not be significantly different
from non-certified mills due to water being a fixed
operational input. However sustainability may be
improved through other techniques.
Going forward, RSPO will look into research on therelationship between certification and palm oil water
footprints to derive more conclusive insights. Whilea mill’s water footprint may be constant due toCertified palm oil mills
have an averagewater footprintof 0.005 m³/kg

lower than othervegetable oils such as
soybean and rapeseed

operational reasons, we will also explore ways in which
we can guide our members to efficiently improve theirwater footprint, through alternative water sources(grey/waste water, rainwater capture), optimising theuse of water in oil extraction processes, and waste
water treatment.

POME and why it is important
The processing of oil palm FFB into crude palm oil ata mill involves steam. Lots and lots of steam. Lots ofsteam requires lots of water, and the resulting effluent
is known as Palm Oil Mill Effluent (POME). Although
non-toxic, POME can be highly polluting if released
directly into waterways due to its high biologicaloxygen demand (BOD) and high temperature, which
can adversely affect aquatic wildlife, as well as beinga major source of greenhouse gases (GHG) (SeeEmissions Management - Mitigation pg 60). The daysof simply discarding POME into nearby waterways areover; P&C 2018 requires POME to be properly treatedas part of a water management plan (Criteria 7.8) toavoid negative effects on surface and groundwater.
The basic treatment approach involves containing
POME within a series of demarcated pools designed

specifically to prevent leaching into the soil andgroundwater while the POME is progressively treatedbiologically through anaerobic digestion (using bacteria
to break down organic matter). Once the water issufficiently clean and nutrient free, it can be released.
Depending on the member, the treated water canbe re-used as an input in the mill, recycled for otheruses (e.g., irrigation, sanitation) or safely released into
waterways. The methane emitted as part of the organic
treatment process can be captured and converted
into biogas, to be used for onsite power generation orplugged into an external electricity grid, while reducing
GHG emissions simultaneously. Treated POME can also
be used as biodiesel feedstock or as liquid fertiliser,providing additional economic incentives for palm oil
mills to responsibly treat POME.

Down by the river: Riparian buffer zones
Riparian buffer zones – or lands alongside rivers andstreams – are critical environments to be conserved.
Planting oil palm in such fragile zones will not only
adversely affect the soil and the water, but also
the palm itself, with risks of erosion, landslides andpollution. P&C 2018 Criteria 7.6 (soil surveys) and 7.8(water practices) indicate that riparian zones should
be protected, or restored if degraded. Rehabilitationof riparian buffer zones (See Remediation, pg 46)

generally involve the removal of oil palms planted in
the area, to be replaced with native natural vegetationsuch as Putat Nasi shrubs (Malaysia), Guadua bamboos(Latin America) or Afzelia Mahogany trees (WestAfrica). The ultimate goal is to restore the physicalfunctions of the riparian zone, including water
filtration, river bank stabilisation, erosion prevention,
flood management and biodiversity conservation.

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Caldeira, C., Quinteiro, P., Castanheira, E., Boulay, A., Dias, A., Arroja, L., & Freire, F. (2018). Water footprint profile of crop-based vegetable oils andwaste cooking oil: Comparing two water scarcity footprint methods. Journal Of Cleaner Production, 195, 1190-1202. doi: 10.1016/j.jclepro.2018.05.221

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REMEDIATIONPEOPLE

PLANET

To become an oil palm grower member of RSPO
is to assume a responsibility. That responsibility
involves not just protecting and conserving existingareas of critical natural and social value, but toalso rehabilitate, restore and remediate pastenvironmental degradation. Within Voluntary
Active or Dormant

Completed

Disclosure

26%

LUCA

16%

25%

Concept
Note

14%

54%

Compensation
Plan

23%

0%

Sustainability Standards (VSS) for agriculturalcommodities, it is common to establish a cut-off
date to halt clearing of forests for development.
For RSPO, that cut-off date is November 2005,
corresponding to the release of the pilot set ofPrinciples and Criteria (P&C).

Not Applicable

Total Cases

59%

2,643

60%

2,542

14%

32%

20%

2%
30%

40%

50%

60%

70%

80%

90%

317

100%

Up to December 2021, RSPO has received 2,643
disclosures from existing members, new membership
applications and group membership consolidation(Figure 1). Of these disclosures, LUCA reviews
established that 59% did not involve non-RSPO

compliant land clearing. The remaining cases withestablished liabilities as identified through the
LUCA review must then submit a Concept Noteand Compensation Plan for a remediation andcompensation project, which is reviewed by external
evaluators and approved by a Compensation Panelbefore implementation.
The area of non-RSPO compliant land cleared afterNovember 2005 (also known as Non-Compliant
Land Clearance or NCLC) is 1.09 million hectares (ha)across 24 countries, which translates into a Final
Conservation Liability (FCL) of 154,923 ha. In simple
terms, this means that 919 of the 2,643 disclosures
received involved non-compliant land clearing that
requires a total area of 154,923 ha to be covered
through remediation and compensation projects. Of
these 919 cases, 391 have been closed and proceeded
to project implementation while 528 are still ongoing.
The difference between the 1.09 million ha of noncompliant land clearing and the 154,923 ha ofnon-compliant conservation liability is linked to thesubstantial amount of historic land clearing done on
degraded or existing agro-forestry areas, with only asmaller portion involving HCV areas.

RSPO Member: Musim Mas Holdings Pte. Ltd.
RSPO Member ID: 2-0907-18-000-00“RaCP is a practical and fair mechanism to address
past liabilities. It is particularly valuable for new
members previously operating outside the RSPO
framework and existing members acquiring estatesfrom non-members that include areas historically
cleared. The focus on impacts challenges us to design
the best possible compensation projects.
This RaCP project is under PT Multipersada
Gatramegah (PT MPG) in Central Kalimantan,
Indonesia. Due to indiscriminate land clearing by
previous owners, PT MPG is situated in a heavily
degraded and fragmented landscape. Our liability
was derived following acquisition of the land, and wehave assumed responsibility for land clearing without
prior HCV assessment, in line with RSPO rules. PT MPG
adopted the in-situ RaCP mechanism, allowing direct
management control to maximise impact. Our project
aims to enhance the connectivity of surrounding
forests at a landscape level, in order to maintain andexpand pockets of wildlife habitats. Another importantintervention was the widening and reforestation of
riparian zones.

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remediating for an area
the size of Singapore

Since 2014, our project has led to significant
documented biodiversity increases, including new
observations of 83 birds, 41 small mammals, 26
reptiles and amphibians, 27 fish and 41 butterfly
species as the forest patches grew in size andconnectivity. More importantly, our impact has also
been socially and economically beneficial for local
communities, e.g., more abundant fish populations
in rivers led to livelihood creation and income
generation. By virtue of this RaCP, our efforts generate
long-lasting and equitable social benefits.

Figure 1: RaCP case progress/completion at each step of RaCP process (as of Dec 2021)

Given our ambition to improve environmental andsocial standards in the global palm oil industry, while
not being exclusionary in membership or certification,
the Remediation and Compensation Procedure (RaCP)
was adopted in 2015 to address land clearance that
had been undertaken since November 2005 without
prior environmental assessment (using the High
Conservation Value approach). The process begins
with members disclosing historical land clearance
fitting that criteria. A Land Use Change Analysis (LUCA)
must then be conducted to ascertain if the clearance
incurred any environmental or social liability. If liability
is determined, then onsite or offsite remediationmust be carried out to compensate for the loss ofconservation areas or negative social impact. This
procedure provides RSPO members with an avenue
to restore and/or compensate for previous nonRSPO compliant land clearing and transition towards
certification as responsible growers.

238 RaCP
Compensation
Plans have been
implemented

Since 2015,

RaCP Case Study:
North Barito, Central Kalimantan

621

75%
10%

Progress on RaCP has faced inertia in the past due
to resource constraints, but we are improving. The
pace of case closures has accelerated, with 81.1% of
all closures achieved between 2019 and 2021. Some
238 Compensation Plans are currently underwaywith a timeline of 25 years each1, remediating for
an area (71,397 ha) equivalent in size to Singapore.
An additional 64,165 ha will be remediated throughcurrent ongoing cases. Through RaCP, RSPO members
do not just conserve valuable environments andecosystems, they restore them as well. Each RaCP
signals a member’s intention to generate positive
impacts for People and Planet by recognising the past.
Reparation for past actions is an important element oftrust and transparency, paving the way toward a more
responsible future for all.

We are committed to maintain and manage these areas
beyond the project timeline of 2040. Our success here
can be attributed to close and continuous engagementwith key stakeholders such as local communities, local
governments, universities and NGOs.”

Credit: Musim Mas Holdings

Equivalent to the average lifespan of an oil palm

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47

Statement from the RSPO Secretariat
on RaCP and operational efficiency“We, the RSPO Secretariat, recognise that ourmembers have faced difficulties over the efficiency of
the RaCP process since it was first introduced in 2015.
As part of the Secretariat’s organisational restructuring
in 2021, a major focus has been placed on improving
momentum over the entire RaCP process, from LUCA
reviews to Compensation Plan approvals. Our internal
resources dedicated to RaCP has expanded and thenumber of LUCA reviewers has also been increased. Aninternal control tool is in place to monitor timelines,

while communication is carefully tracked to avoid
omissions. In terms of systemic improvements, we aredeveloping frameworks to better assess social HCV
liabilities, and to introduce structured reporting of
RaCP projects and their impacts in a consistent andeffective manner.”
Wan Muqtadir Wan Abdul Fatah, Head of Integrity
Khing Su Li, Head of Biodiversity

RaCP Case Study:
Southeast Laguna del Tigre National Park
individuals in Guatemala. The national park also
provides critical habitats for over 120 mammals and350 bird species, including IUCN Red List species suchas the jaguar (Panthera onca), Yucatán black howler
monkey (Alouatta pigra), Baird’s tapir (Tapirus bairdii)
and Central American river turtle (Dermatemys mawii).

RSPO Member: Agroamerica Tropical Oil Holding Corp
(formerly Agrocaribe)
RSPO Member ID: 1-0374-22-000-00 (formerly
1-0069-08-000-00)

The Paso Caballos community participates through aforest fire alert system controlled by 144 people, andhas been instrumental in controlling 273 recorded
agricultural burnings in the area. This has contributed
to alleviating poverty and mitigating climate change
to remediate previous negative environmental andsocial impacts.”“We are supporting the biodiversity conservation
project in southeast Laguna del Tigre National Park
(LTNP), part of the Maya Biosphere Reserve (MBR) in
Petén, Guatemala, with a total area of 19,098 ha. Our
objectives are to conserve biodiversity by protecting
endangered species and natural ecosystems, andto promote the alliance between the Paso Caballos
community and public institutions through socioenvironmental initiatives. Our total investment is
US$1.195 million for 25 years, starting in 2018.
The LTNP contains 13 of the 16 ecosystems identified
with the MBR. There are unique landscapes in the
project area, including the source of the San Pedro
River, Peñón de Buena Vista, as well as criticalcultural features such as the ancient Mayan cities
of La Corona and El Perú. It also contains the mostsignificant remaining nesting population of thecritically endangered Central American scarlet macaw(Ara macao cyanoptera), estimated to be only 300

Credit: Agroamerica Tropical Oil

Credit: RSPO, Jonathan Perugia

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49

PREVENTINGFIRE
One of the catalysts that led to the formation of RSPO in 2004 was thesevere haze that blanketed Southeast Asia in 1997. This was the resultof an extreme El Niño weather cycle causing extremely dry conditions in
the region, ignited by traditional slash-and-burn land clearing techniques
for agriculture (including oil palm) and exacerbated by dried peatlands
drained for oil palm development. Since the first iteration of RSPO
Principles and Criteria (P&C) in 2005, we have taken a zero tolerance
approach to fire. Criteria 7.11 under P&C 2018 states that “fire (mustnot be) used for preparing land and is prevented in the managed area”.
However, transboundary haze and other negative aspects of fire remaina risk, as it may occur unintentionally or spread from outside the RSPO’s
sphere of influence. Our mechanisms are therefore geared towards
minimising the risks of fire occurring and persisting, as well as mitigating
fires when they do happen. Through a combination of advanced
geospatial analysis and constant communication with our members,
RSPO intends to minimise fire risk within our members’ concessions toeliminate the threat of creating pollution and causing deforestation.

Introducing the RSPO Hotspot Hub
Launched in July 2021, the RSPO Hotspot Hub is designed to bring greatertransparency and accountability to address the issues of forest fire, open
fire and the use of fire for pest control within the framework of the RSPO
Principles & Criteria (P&C) 2018 and the RSPO Independent Smallholder(ISH) standards. This interactive digital platform provides information on
verified hotspots and potential fires within RSPO certified and non-certified
concessions, and highlights the actions carried out by members to remedy
the situation. Under the RSPO Internal Hotspot and Fire Monitoringprocedure, the discovery of a hotspot in, or near, an RSPO concession,
will trigger a Hotspot Alert by RSPO to the member for their verification
and action. Information on the date, cause, persistence of fire, size of theaffected area and preventive actions taken by the member is captured.
The Hotspot Hub publishes this data publicly, providing transparency
on ensuring that potential fires have been reported, prevented andextinguished. Coverage of our fire hotspot monitoring is global acrosscertified and uncertified concessions owned by RSPO members.

Credit: RSPO, Jonathan Perugia

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Fire - Within Concession
Fire - Uncertain Cause

FIRE RISKPEOPLEPROSPERITY

Fire - Outside Concession
No Response
No Fire

12%
26%

PLANET

Fire is primordial. And the vision of flames razing
hundreds of hectares of land to the ground is
apocalyptic. Unfortunately, due to climate change
this scenario is becoming more frequent. RSPO takes
fire seriously, in our standards and in our systems,
and there is evidence from independent researchthat this approach is working.
A 2016 study1 found that fire activity in Indonesia wassignificantly lower in RSPO certified concessions thannon-certified ones when the likelihood of fire is low(i.e., non-peatlands during wet years) but equal inoccurrence when the likelihood is high (on peat, andnon-peatlands during dry years). A 2017 study2 with alarger sample size3 found a stronger correlation: RSPO
certified concessions in Indonesia had lower firedriven deforestation than non-certified concessions,
including accounting for El Niño events (weather
patterns that cause dry-to-drought conditions inSoutheast Asia). Fire activity in the 2002, 2004 and2006 El Niño events were similar in all concessions
sampled, including those that would later become
RSPO certified. In the 2009 and 2015 El Niño events,
however, fire activity was 75% and 66% lower in
RSPO certified concessions. The last data point isvery significant, as the 2015 El Niño was the latest
occurrence of the extreme super El Niño (estimatedto recur in a 15-20 year cycle) and the cause of thesecond-worst Asian transboundary haze crisis (after
1997/98, during the previous super El Niño).

If there is a fire hotspot
detected in Indonesia or
Malaysia, there is aless than 1.5%
probability
that the fire hotspot is
within an RSPO certified
concession2%
2021
Total hotspots
Hotspots(RSPO certified concession)
Hotspots(RSPO member concession,
uncertified)

8%

85,471
1,216

51%

1.4%
Figure 2: Responses to RSPO Hotspot Alert(certified concessions, 2021)

10,107 11.8%

Peat Hotspots(RSPO certified concession on peat)

98

0.1%

Peat Hotspots(RSPO member concession,
uncertified, on peat)

3579

4.2%

Figure 1: Fire Hotspots in RSPO member concessions (2021)

Beyond requirements in the P&C (see “How does
RSPO mitigate fire risk?”), we also address firerisk directly. RSPO has been empowered to collectdigital concession maps of all members planting
oil palm, publicly available on GeoRSPO. Mapped
against monitoring data sources such as the NASA
Fire Information for Resource Management System(FIRMS) and Global Forest Watch Pro platform,
we monitor for fire hotspots daily within all RSPO
concessions, certified and non-certified. Any detectionof a hotspot will prompt an alert for verification,
investigation and action with a recommended
response time of five days.
In 2021, over 85,000 fire hotspots were detected inIndonesia and Malaysia alone (Figure 1), including
those associated with other industries such as timberand non-oil palm agriculture. Of these hotspots,
11.8% were within RSPO member concessions andonly 1.4% in RSPO certified concessions. This isconsistent with the very low fire hotspot probability
in certified concessions recorded in previous years,
with the chance of fire hotspots detected in certified
concessions being close to 1%, including during thelast El Niño in 2019 when over 450,000 hotspots weredetected. Only 0.1% of 2021 hotspots were detected
in RSPO certified concessions on peat.

If a fire hotspot is detected, 74% of RSPO certified
concessions responded to the Hotspot Alert (Figure2). In 2021, 12% of alerts were confirmed to be false
alarms, while 51% were actual in-concession fires
that were acted upon and 10% were undeterminedor found to be beyond the concession. Similar
patterns were noted in Hotspot Alerts issued to
non-certified concessions of RSPO members. If aHotspot Alert response was received, 56% of certified
concessions replied within the recommended 5
working days, with an average of 11 working days for
all responses. For non-certified member concessions,
71% responded within the recommended timeframe, with an average of almost 14 working days
in total. The most common cause of in-concession
fires was spread from off-concession burning by local
communities (86%), with sporadic occurrences of
spontaneous fires from extreme dry conditions andto control bud rot (in Latin America).

How does
RSPO mitigate fire risk?
Fire prevention elements are distributed acrossseveral criteria in the P&C 2018. Beyond the obvious
prohibition on fire for planting or replanting (P&C
Indicator 7.11.1), certified units must establish fire
prevention and control measures (7.11.2) and workwith neighbouring stakeholders on fire prevention(7.11.3). The ban on new plantings on peat (7.7.1)
is crucial as dessicated peatlands drained for
agriculture are a major fire risk. Particularly sincepeat burns incompletely with low oxygen levels,
leading to the formation of thick haze containing
noxious chemicals. Best Management Practices forwater management (7.8.2) require water courses
to be protected to ensure appropriate groundwaterlevels that prevent unintentional drying of peat, andto maintain buffer zones (riparian or terrestrial),
which prevent fires that do occur from spreading
unchecked. Water management plans that avoid
negative effects within the catchment area (7.8.1)
may broaden that scope to vulnerable areas adjacent
to concessions. Existing plantations on peat must
undergo drainability assessments (7.7.5), with a plan
to eventually phase out oil palm and replace it withpaludiculture or natural vegetation. Fire must also
be avoided for waste disposal (7.3.3) or pest control
unless under exceptional circumstances (7.1.3).

Protection of marginal/fragile soils (7.5.1), use of soil
surveys for planned plantings (7.6.1), topographicalinformation to guide land and water infrastructure(7.6.3), and protection of natural surface vegetation
under HCV 4 (7.12) can help design a blueprint for
future oil palm planting that accounts for current
areas of known fire risk. Within the oil palm industry,
this is of major significance in Southeast Asia,
especially in Indonesia and Malaysia, with at least
two crisis-level transboundary haze events (1997 and2015) since records began in 1972. It is also equallyimportant to consider in Latin America, where firerisk associated with oil palm is less, but overall firerisk linked to agriculture is high. The 2019 Amazon
rainforest wildfires were particularly destructive.
It is also pertinent to oil palm in Africa, wheresome fire risk factors from Indonesia and Malaysia
are present, including being home to the world’s
largest tropical peatland – the Cuvette Centrale thatstraddles the Democratic Republic of the Congo andthe Republic of Congo. This is an area larger thanBangladesh (16.7 million hectares) and stores almost
28% of global tropical peat carbon. Only 8% is undernational-level protection by either government, andseveral oil palm concessions already exist within thebasin’s boundaries4.

Cattau, M., Marlier, M., & DeFries, R. (2016). Effectiveness of Roundtable on Sustainable Palm Oil (RSPO) for reducing fires on oil palm concessions inIndonesia from 2012 to 2015. Environmental Research Letters, 11(10), 105007. doi: 10.1088/1748-9326/11/10/105007
2
Noojipady, P., Morton, D., Schroeder, W., Carlson, K., Huang, C., & Gibbs, H. et al. (2017). Managing fire risk during drought: the influence of certificationand El Niño on fire-driven forest conversion for oil palm in Southeast Asia. Earth System Dynamics, 8(3), 749-771. doi: 10.5194/esd-8-749-2017
32016 (Cattau et al) sampled 28 RSPO certified (4 on peat) and 25 non-RSPO certified concessions (11 on peat). 2017 (Noojipady et al) sampled 154 RSPO
certified and 1,536 non-certified concessions, 119 in Malaysia and 10 in Papua New Guinea, with a broader coverage for peat.
4
Crezee, B., Dargie, G., Ewango, C., Mitchard, E., Emba B., O., & Kanyama T., J. et al. (2022). Mapping peat thickness and carbon stocks of the central
Congo Basin using field data. Nature Geoscience, 15(8), 639-644. doi: 10.1038/s41561-022-00966-7
1

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In action:
The RSPO internal hotspot & fire monitoring
Hotspot Hub Case: Jan2021_057
RSPO Member: Daabon GroupRSPO Membership ID: 1-0132-12-000-00
Subsidiary, Plantation: Palma y Trabajo S.A.S,
Oleyuma Plantation
Country, State/Region: Colombia, Santander
Actual Fire?: Yes, in concession
Affected Area: 1.5 ha
Cause of Fire: Suspected arson (police report filed)
Hotspot reported: 12 January 2021
Visual Confirmation of Fire Extinguishing:		
20 January 2021
Credit: Daabon Group

Hotspot Hub Case: Sept2021_596
RSPO Member: PT Austindo Nusantara Jaya AgriRSPO Membership ID: Desa Laman Satong
Subsidiary, Plantation: PT Kayung Agro Lestari,
Sungai Gemilang Teduh 1
Country, State/Region: Indonesia, West Kalimantan
Actual Fire?: Yes, in concession
Affected Area: 0.5 ha
Cause of Fire: Land clearing by fire for rice cultivation
spread from adjacent Laman Satong village(community fire awareness has been conducted)
Hotspot reported: 24 September 2021
Visual Confirmation of Fire Extinguishing: 24
September 2021 (self-detection through plantation
daily fire report)
Credit: PT Austindo Nusantara Jaya Agri

Hotspot Hub Case: Oct2021_030
RSPO Member: IOI Corporation Bhd
RSPO Membership ID: IOI Corporation Bhd
Subsidiary, Plantation: Pamol (Sabah) Grouping
Country, State/Region: Sabah, Malaysia
Actual Fire?: Yes, outside concession (approximately
900m from estate boundary)Affected Area: 0.5 ha
Cause of Fire: Burning by local communities(engagement with communities initiated)
Hotspot reported: 6 October 2021
Visual Confirmation of Fire Extinguishing: 		
7 October 2021

Credit: IOI Corporation Bhd
Credit: RSPO, Jonathan Perugia

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LIMITING
CLIMATE CHANGE
Agricultural activities, including oil palm, not only contribute to climatechange, but are also affected by it. In the almost two decades since
RSPO was formed, we have seen how the cyclical effects of climatechange on extreme weather - from droughts and heatwaves to torrential
rainfall and flooding - have had tremendous effects, and disruptions, onpalm oil supply and prices. Addressing this is paramount, both throughadapting production systems to cope with climate change impacts andhastening efforts to reduce the greenhouse gas (GHG) emissions that
contribute to it.
Our approach to this is broad-based:
Avoidance - To avoid potential climate change emissions, growers are
required to identify, assess and estimate carbon stocks thoroughly prior to
any new oil palm development.
Sequestration - To sequester potential emissions from risky new
developments, we have taken a zero tolerance approach to planting on
tropical peatlands.
Mitigation - To reduce the risk of potential emissions, RSPO prohibits theuse of fire in land preparation, and constantly monitors fire hotspots (on adaily basis) in member concessions (see Preventing Fire chapter, pg 50).
Mitigation - To minimise emissions arising from operations in areas alreadydeveloped, we work together with certified members to identify andcalculate GHG emissions risk, and implement plans to lower those levels.

The RSPO PalmGHG calculator
Developed by the RSPO’s Greenhouse Gas Working Group 2 (GHG-WG2)
between 2009 and 2011, PalmGHG is a GHG calculator specific to oilpalm that allows RSPO members to estimate and monitor their risks
associated with net GHG emissions. Criteria 7.10 of the Principles &Criteria (P&C) 2018 requires certified plantations and mills [known as Unitsof Certification (UoC) or units] to implement and monitor plans to reduce
pollution and emissions, including GHG levels. PalmGHG is used to meetthis criteria of the standard, with net GHG emission levels reported publicly
in a certified unit’s audit report. PalmGHG is intended to allow crucial
areas of GHG emissions within a unit’s concession and operations to be
identified and to direct reduction opportunities. It is primarily a risk tool,
calculating the most significant aspects that contribute to emissions basedon the concession and operational profile of the unit - including fertiliseruse, fossil fuel consumption, peat oxidation and POME, while offsetting
savings from crop and conservation sequestration. The current version of
PalmGHG is v4.0, which introduced options for online/offline reporting.
Member feedback on PalmGHG v4.0 has been noted and will be used to
guide the development of PalmGHG v5.0.

Credit: RSPO

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EMISSIONS MANAGEMENT- AVOIDANCEWe see this progress - which has been growing
every year - as an assurance that RSPO standards are
generating our intended positive impacts. But what
if RSPO did not exist, or there was no compliance to
NPP requirements? Scenario analysis (Figure 2) showsthat the absence of RSPO (or RSPO procedures) could
actually result in a net growth of emissions, with aworst case scenario of 104,660 tCO2e/year emitted
in totality from areas that are now conserved andprotected through RSPO certification.

RSPO NPP ComplianceBusiness-as-usual (Absence of RSPO)

500,000
0

PEOPLEPROSPERITY-500,000

PLANET-1,000,000

Since the Industrial Revolution began, humaneconomic activity has emitted carbon dioxide
in trillions of metrics tonnes (MT), raising theatmospheric concentration of CO² from 275 parts
per million (ppm) in 1750 to 421 ppm in May 20221.
In 2015, 196 countries negotiated the Paris Climate
Accords, which aims to contain the rise in average
global temperatures to 1.5°C above pre-industrial
levels and substantially reduce the worst effects
of climate change. Reducing emission levels fromproduction processes is one aspect of reaching that
goal, but avoiding the potential release of stored
carbon is also very crucial.

Cumulative GHG emissions
avoided through RSPO
procedures equivalent to395,289 cars

In 2010, RSPO introduced the New Planting Procedure(NPP) to address the subject of avoiding emissions.
Embedded within NPP - which applies to any new land
clearing for oil palm - is the GHG Assessment Procedure
for New Development. This is used to estimate thecarbon stock and major potential emissions sourcesthat may result from proposed development, anddirecting the conservation of critical areas2. From this,we have identified that maximum emissions savings
are from land use, and maximum sequestration fromconserved forested areas and peatlands. RSPO has alsoenhanced our stance on No Deforestation, No Peat,
No Exploitation (NDPE) corporate commitments, now
embedded in P&C 20183 which includes a prohibitionof any new planting on peat, regardless of depth.
Since 2015, a cumulative total of 7,743 hectares(ha) of peatlands has been preserved through NPP,
Sequestration (Conservation)-1,500,000

driven per year, morethan the motor vehicle
fleet of Macau and Brunei
Darussalam combined5

entirely within Asia. Through HCV, HCS and HCVHCS assessments, an area of 78,026 ha (primarily in
Asia and Africa) has also been conserved, acting as acarbon sink and avoiding emissions associated withland use change. In combination, RSPO has avoided acumulative 1.83 million MT of CO² equivalent per year
(tC02e/year) as of 2021 (Figure 1), corresponding tonearly 400,000 passenger cars driven annually. Whichis a figure larger than the motor vehicle fleet of at least
56 countries4.

Land use

Peat emissions

2,000,000
1,800,000
1,600,000
1,400,000
1,200,000-2,000,000

2015

2016

2017

800,000
600,000

2019

2020

2021

Figure 2: Scenarios on cumulative GHG emissions: RSPO NPP compliance vs Business-as-Usual

The importance of tropical peatlands
They don’t look like much, but peat forests andswamps are environmental jewels. Water-logged
ecosystems formed by the accumulation of partiallydecayed organic matter, peatlands are highly efficientcarbon sinks that cover 3% of the world’s land surface(~400 million hectares) but store nearly 30% of global
below-ground carbon (~550 Gigatonnes)6. Specifically,
tropical peatlands are very adept at hoarding carbon,
storing more than 102 Gigatonnes of below-groundcarbon over some 42 million hectares (mainly inSoutheast Asia and the Central Congo Basin)7.
In the 1980s, oil palm plantations in Southeast Asia
began expanding into peatlands, lowering the watertable through controlled draining to create suitableconditions for agriculture. While this did expand
Fresh Fruit Bunches (FFB) output, such plantations
faced issues of low yields and increased operationalcosts. Beyond this, large-scale peat conversion turneda major carbon sink into a major carbon emissions
source, affecting unique biodiversity and increasing
fire risk. In some RSPO certified units, converted
peatlands account for less than 25% of production
area but are linked to more than 80% of GHG
emissions. For that reason, there is a major focus on
peatlands in RSPO standards. P&C 2013 introduced
conditions to minimise peat conversion, and P&C 2018
went further to prohibit any new planting on peat
regardless of depth.
In place are new procedures to responsibly
manage existing plantations on peat, and to begin
rehabilitating degraded peatlands, which will have

1,000,000

2018

positive impacts on reducing emissions and restoring
biodiversity. These include:- Peat Inventory, documenting all areas of peat
(planted or otherwise) within RSPO member
concessions, submitted to the RSPO Secretariat for
centralised monitoring.
- Peat Best Management Practices (BMP), Peat Audit
Guidance, through updated RSPO guidelines andmanuals for existing cultivation on peat. The Peat
Audit Guidance highlights minimum requirements toensure compliance against peat-related requirements
in P&C 2018.
- Peat Drainability Assessment (DA), to assess futuresubsidence and flood risks of converted peatlands. DAsmust be conducted five years prior to any replanting
on peat, to allow sufficient time for informed decisions
on either extending the plantation’s workable lifespanon peat or to phase out oil palm in the assessed areas
for restoration.

Credit: RSPO

400,000

0

2

2015

2016

2017

2018

2019

2020

2021

Figure 1: Cumulative GHG emissions avoided through RSPO procedures for New Development

58

US National Oceanic and Atmospheric Administration (NOAA).
As assessed through High Conservation Value (HCV), High Carbon Stock (HCS) or integrated HCV-HCS.
3
Chain Reaction Research. (2019, February 6). The chain: NDPE uptake impacts list of top 10 deforesters in Southeast Asia.
4
List of countries by vehicles per capita. (2022, September 2). In Wikipedia. https://en.wikipedia.org/wiki/List_of_countries_by_vehicles_per_capita
5
Macau =120,075 passenger cars, Brunei Darussalam = 268,801 passenger cars. From national sources.
6
Estimates from International Union for Conservation of Nature (IUCN).
7
Cole, L., Åkesson, C., Hapsari, K., Hawthorne, D., Roucoux, K., & Girkin, N. et al. (2022). Tropical peatlands in the anthropocene: Lessons from the past.
Anthropocene, 37, 100324. doi: 10.1016/j.ancene.2022.100324.
1

200,000

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59

PEOPLEPROSPERITYPLANET

In 2019, 2,-0 LCA Consultants conducted an
independent Life Cycle Assessment (LCA) on theenvironmental impact of RSPO certified and noncertified palm oil. Covering 634 estates and 165 millsin Indonesia and Malaysia (58% of which were RSPO
certified), the study concluded that RSPO certification
has a 35% lower global warming impact and a 20%
lower biodiversity impact. RSPO can, and already has,played a key role in reducing GHG emissions throughcertification, and we must continue to build on this as
decarbonisation takes prominence.
Based on ACOP reporting, average GHG emissions
in 2021 from RSPO oil palm grower members withat least one P&C certified unit was an estimated
3.2 tCO2e/metric tonne (MT) of crude palm oil,considerably lower than emissions from all RSPO
grower members (certified or otherwise). An analysis
on a sample of PalmGHG emissions risk profiles ofcertified units showed a median of 1.8 tCO2e/MT,with significant outliers (positive double digits or slightnegative levels). The main swing factor is Palm Oil Mill
Effluent (POME), where biogas capture and treatment
leads to much lower emissions. POME is, in fact,
identified as the main source of emissions within RSPO
grower members (Figure 1), with 65% of growers citing
it as a key emissions source, followed by fertiliser
application (53%) and land use change (38%).

Fossil Fuel

In general, RSPO grower members have mademajor progress in identifying emissions sources andmitigating those through targeted solutions. Certified
growers are also more likely to have established a
GHG baseline (67% of certified growers vs 26% ofuncertified growers), a necessity to create a GHG
reduction plan with targets and timelines. Once abaseline has been established, a large proportion ofcertified and uncertified growers (67% and 88%) havealready implemented emissions reduction plans andtargets, inferring that baselines are an important stepthat should be encouraged.
Emissions targets vary, but some of our members andcertified units appear to have the potential to be net
zero in Scope 1 terms (see “Scope for thought?”).
The sample of PalmGHG calculations shows that atleast 30 RSPO certified units have a net negativeemissions risk level (mainly in Latin America, butalso in Africa and Southeast Asia), associated witha higher proportion of conservation areas and/or
thorough treatment of POME. A few more are nearnet zero risk. While reporting emissions levels by GHG
scope is left to individual members, RSPO requires(through PalmGHG) certified units to identify, gather
and calculate most of the necessary elements foremissions accounting by scope that can be used bymembers to address their own commitments andplans towards decarbonisation.

2%

Land Use Change

38%

Palm Oil Mill Effluent (POME)The Greenhouse Gas Protocol (GHGP), the most widelyused GHG accounting standard, categorises GHG
emissions into three scopes, based on sources:- Scope 1 refers to direct emissions from sources
owned or controlled by an organisation- Scope 2 refers to indirect emissions associated withpurchased electricity, steam, heat or cooling for an
organisation’s use- Scope 3 refers to all other indirect emissions notincluded in Scope 2 that occur within an organisation’svalue chain, both upstream and downstream
In a palm oil context, a plantation and mill’s Scope 1
emissions encompasses any activity associated with theplanting of oil palm, harvesting of FFB and extractionof palm oil, including fertiliser application, fossil fuelusage and POME treatment. Scope 2 covers energy
from off-site sources, including grid electricity (andthe associated energy mix such as coal, oil, gas, solar,
wind, etc.) and renewable energy offsets. Scope 3 is thebroadest, including any and all emissions beyond theplantation and mill, such as production of fertiliser raw
materials, manufacture of fixed assets like machinery(leased or owned), land or seabourne logistics,
processing of derivatives, packaging and distribution,
end-of-life treatment of waste products, even down toflights for business travel and workforce transport.
The current RSPO approach to emissions (throughPalmGHG) is aligned with Scope 1 and partial elementsof Scope 2, though the values are not comparable
due to differing objectives. A 2016 paper1 determined
PalmGHG to be mostly in line with international
GHG accounting standards but does not include
some elements of a full Life Cycle Assessment (e.g.,
eutrophication, biogenic materials). The paper
concludes that PalmGHG should not be considered anindicator of global environmental impact but of global
warming potential, and provides useful information forcertified units to reduce emissions. Further alignment
may be possible in the development of PalmGHG v5.0,
but we note that a full inclusion of Scope 3 elements
is highly challenging, although there is potential for
limited inclusion up to the refinery level on an optional
basis. The feasibility of Scope 3 alignment could
increase in the long run as governments move to meetnational pledges linked to the Paris Climate Accords,
reiterated at COP26 in 2021 through the Glasgow
Climate Pact.

65%

Case Study: Comparative
levels of GHG emissions inpalm and other vegetable oils
United Plantations (UP) - the first-ever RSPO member
to receive P&C certification in 2008 - has commissioned
Denmark’s 2.-0 LCA Consultants to conduct an annual
LCA of its palm oil production since 2004. The results of
the latest study2 shows that UP’s RSPO certified palm
oil has far lower GHG emissions than non-certified
palm oil , sunflower oil from Europe and rapeseed
oil from Ukraine4. Average emissions from UP’s RSPO
certified palm oil were also lower than for the averagefor RSPO certified palm oil3.
We note two key insights from the results of the study.
The first is that GHG emissions from RSPO certified
palm oil is 36% lower than conventional palm oil, withthe data for UP inferring a wide variance in emission
levels even within RSPO certification that is in linewith other available RSPO data. The second is that arigorous and systemic approach to certification could
be associated with lower emissions; all five of UP’s mills
have biogas capture facilities, with the four sites in
Malaysia being Identity Preserved (IP) certified and itssite in Indonesia being Mass Balance (MB) certified.
Soybean oil, the second largest vegetable oil crop in
the world, was not included in the UP study (2022).
However, other studies do provide insights. Thoughmethodological differences mean direct comparisonsof the values obtained are not possible, a 2022 study
by Alcock, Salt, Wilson and Ramsden5 calculated
that median GHG emissions associated with refinedsoybean oil were 4.25 kgCO2e/kg, and higher than 3.81
kgCO2e/kg average for all other oils analysed (palm,soy, rapeseed and sunflower). Conventional palm oil
was assessed at 3.73 kgCO2e/kg, and higher than thatfor rapeseed and sunflower. These relative values arein line with the UP study (2022). Crucially, this second
study also pointed out that oil palm emissions arehighly dependent on soil type, rising to as high as 34
kgCO2e/kg for plantations on peat, while noting thatmethane (biogas) capture/treatment from POME canreduce emissions by over 50%.
Non-Certified Palm Oil
kgCO2e/kg oil

EMISSIONS MANAGEMENT- MITIGATION

Scope for thought? RSPO
and GHG emissions scopes

Sunflower Oil

3.37

RSPO Certified Palm Oil

3.33

Rapeseed Oil
UP Palm Oil

Fertiliser application

53%

Existing cultivation on peatland
0%

Impact Report 2022

2.85
1.47

Figure 2: GHG emissions for United Plantations,
RSPO and non-certified palm oil, and other vegetable oils

14%
10%

20%

30%

40%

50%

60%

Figure 1: Key GHG emission sources identified by RSPO Grower Members (ACOP 2021)

60

5.22

70%

Bessou, C. (2019). PalmGHG, RSPO greenhouse gas calculator, scientific background. SMART Research Institute.
Schmidt J & De Rosa M (2022), Life Cycle Assessment of Palm Oil at United Plantations Berhad 2021, Results for 2004‐2021. Summary report. United
Plantations Berhad, Teluk Intan, Malaysia.
3
Schmidt, J., & De Rosa, M. (2020). Certified palm oil reduces greenhouse gas emissions compared to non-certified. Journal Of Cleaner Production, 277,
124045. doi: 10.1016/j.jclepro.2020.124045
4
Schmidt, J. (2015). Life cycle assessment of five vegetable oils. Journal Of Cleaner Production, 87, 130-138. doi: 10.1016/j.jclepro.2014.10.011 mills havebiogas capture facilities, with the four sites in Malaysia being Identity Preserved (IP) certified and its site in Indonesia being Mass Balance (MB) certified.
5
Alcock, T., Salt, D., Wilson, P., & Ramsden, S. (2022). More sustainable vegetable oil: Balancing productivity with carbon storage opportunities. Science Of
The Total Environment, 829, 154539. doi: 10.1016/j.scitotenv.2022.154539
1

2

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61

ADVANCING
CERTIFICATION
Certification is at the heart of RSPO’s ability to create positive impacts.
As a voluntary sustainability standard and as a membership organisation,
our vision can only be achieved by the willingness of our members
to collectively set an ambitious agenda for sustainability in the palm
oil industry, and to live up to those standards. Sustainability is now
embedded into the vocabulary of the global palm oil supply chain,because RSPO has defined and continues to define what sustainability
in palm oil means. Continued growth in the reach and extent of RSPO
certification shows an established acceptance of the RSPO standards by
the industry at large. But more than just motivational numbers, RSPO
certification drives our ability to create and perpetuate positive impacts
as a means to enforce the Principles & Criteria (P&C) and its various
social, environmental and ethical ambitions. From a foundation of strong
certification and credible assurance, we can also initiate new approaches
to certification such as Jurisdictional Approaches (JA) and explore the useof technology to improve traceability across the supply chain to meet
evolving expectations of sustainability.

Certifying the palm oil supply chain
From fruit to oil to ingredient to product, the entirety of the palm oil supply
chain is long and complex. RSPO’s standards and certification cover theentire sustainability journey of palm oil, ensuring traceability and providing
assurance that our palm oil, and its many fractions and derivatives, aresustainable. Upstream, the P&C and RSPO Independent Smallholder (ISH)Standard ensure that FFB is sustainably grown and processed into palm
oil at certified mills. Downstream, the Supply Chain Certification (SCC)
standard provides traceability over the whole chain of custody, with theoption of using the RSPO Trademark as a visible emblem of certification.
RSPO Independent
Smallholder Standard

RSPO Principles &Criteria (P&C) Standard
Fresh Fruit Bunch(FFB)

Smallholder
FarmerPalm Kernel
(PK)

Mill

KernelCrushing Plant

RSPO Supply Chain
Certiﬁcation (SCC)

Palm Kernel
Expeller (PKE)

Plantation
Crude Palm Oil(CPO)

Palm Kernel Oil(PKO)
Collection Points

Palm Fractions

Reﬁnery/
Fractionation Plant
Processor
Palm Derivatives
Manufacturer

Product
Consumer

Simplified palm oil supply chain

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Credit: RSPO, Jonathan Perugia

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63

CERTIFICATION TRENDSPEOPLEPROSPERITYRSPO Standards continue to make progress in generating positiveenvironmental and social impacts. The Assurance Standing Committee(ASC) will continue to focus on our pathway for rigorous standards
implementation while preserving our integrity by addressing thecomplexity of sustainability challenges. We will scale up and accelerate
our actions, but for this to happen we need stronger collaboration in
the spirit of shared responsibility.

PLANET

In 2008, RSPO certified area covered some 125,000
hectares (ha) in three countries. In 2009, it morethan doubled to over 300,000 ha. Since crossing the
1 million ha mark in 2012, the global RSPO certified
area reached 4.5 million ha as of December 2021 andspans 21 countries, maintaining an upward trajectoryin spite of worldwide supply chain disruptions causedby the coronavirus disease (COVID-19). Indonesia
and Malaysia account for almost 80% of certified
areas, but the most significant growth in recent years
has come from Africa and Latin America. Between
2017 and 2021, the certified area in Africa morethan quadrupled to over 220,000 ha (expanding into
Cameroon, Nigeria and Sierra Leone for the first time),
while Latin America nearly doubled to almost 470,000
ha (expanding into Mexico).
Of the 4.5 million ha of certified area, 3.3 million ha isdevoted to production1. This is the area where mature
oil palms are grown and harvested for Fresh Fruit
Bunches (FFB) that are processed in a palm oil mill.
There are over 462 RSPO certified mills, representing
22.8% of the 2,032 mills tracked in the Universal Mill
List2. The number of certified mills also continues torise, from 34 in 2009 to 462 in 2021 (Figure 2). These
additions cover a broad geographical range. In 2020
and 2021, 29 mills in Latin America and 5 mills in
Africa obtained their first P&C certificates, while thestrongholds of Indonesia and Malaysia added 19 and7 mills, respectively, with the impetus for certification
remaining strong and broad.
RSPO’s certified plantation and mill base now include
pioneers such as United Plantations in Malaysia3,
medium-sized growers such as The Natural Palm
Group in Thailand, and new members such as
Palmeras Santana in Colombia. But the impact of RSPO
certification goes beyond these headline numbers. To
become certified, plantations and mills must meet the
rigorous set of criteria prescribed by the P&C (e.g.,
environmental/social impacts assessments, legalityof operations, remediation). To maintain certification,
they must adopt best practices and monitor continual
improvement as required by the standard [e.g.,greenhouse gas emissions monitoring, occupational
health and safety procedures]. More than just a series
of increasing numbers, certification is the avenue
through which RSPO can provide assurance that eachdrop of certified palm oil has been produced ethically,
responsibly and sustainably.

Indonesia

Malaysia

Latin America

AfricaROW

2,500,000

2,000,000

1,500,000

Traceability and Productivity

1,000,000

500,000

0

2009

2013

2017

2020

2021

Figure 1: Evolution of RSPO Certified area by country or region

500
450
400
350
300
250
200
150
100
50
0

64

Impact Report 2022

The number of certified mills is important, as it
illustrates the reach of RSPO certification. How thesemills produce palm oil is just as important. RSPO
certification provides different levels of traceability.
Identity Preserved (IP) certification has a high levelof traceability as the FFB can be identified from only
certified sources, while Mass Balance (MB) is a mix ofcertified and conventional FFB.
Of the 462 certified mills (Figure 3), 287 were MB
certified and 156 were IP certified (a further 19 being
dual IP-MB certified). Proportionally, MB is the highest
in Africa, Indonesia and Malaysia, while IP is morecommon in Latin America and the rest of the world(ROW). However, this is only part of the story. Up until
2020, IP mills formed a majority of Certified Volumes4.
Since then, MB Certified Volumes have exceeded IP,
continuing an acceleration in MB certification that
dates back to 2016.

2009

2013

2017

2020

2021

Figure 2: Evolution of RSPO certified mills (global)

The difference between certified and production area is hectarage dedicated to conservation and infrastructure (eg. buildings such as mills, offices,
storage, or infrastructure such as roads, water treatment areas, etc.).
2
The Universal Mill List was launched in 2018, developed by the World Resources Institute (WRI), Rainforest Alliance, Proforest and Daemeter, with
contributions from RSPO et. al.
3
United Plantations received the inaugural RSPO P&C certification in August 2008.
1

Agus Purnomo
Co-chair of the RSPO Assurance Standing Committee (ASC) representing
the Indonesian Growers Caucus and Golden Agri-Resources

This trend is replicated downstream, with the supply
chain beyond mills also showing similar trends
in growing MB volumes. We attribute this to ageographical diversification of certified sustainablepalm oil (CSPO). Growth in CSPO demand isincreasingly coming from developing markets such as
Japan, Turkey, India and China, where MB may be in
use as a first step towards sustainability, while mature
markets like Europe and North America, which value
high levels of traceability but have lesser growthpotential, already largely served by existing IP mills(e.g., in Papua New Guinea and Latin America).

4.5 MT/ha Average

oil yield of RSPO certified
plantations and mills in 2021

Country

Certification Model

Indonesia
Malaysia
Latin America
Africa
ROW
Total

IP
55
54
30
1
16
156

MB
168
83
21
10
5
287

IP/MB
11
0
3
1
4
19

Total
234
137
54
12
25
462

Figure 3: RSPO certified mills by country/
region and Supply Chain Model

This pivot is notable, and underscores the need for
RSPO certification to be inclusive to all markets
and adaptable to shifts in demand.
In terms of productivity, there is considerable variationeven within RSPO certification, being as high as 7
metric tonnes (MT) of palm oil per hectare or as low as
below 2 MT/ha. Weather, soil fertility, labour efficiency,
seed varieties, and other factors play a clear role indetermining yields. A 2017 research study5 calculated
that potential yields could be higher than 8 MT/ha inmost regions, but average actual yields were 3.3 MT/
ha. This is in line with RSPO estimates that current
global yields are 3.2 MT/ha, with RSPO certification
showing higher average yields at 4.5 MT/ha6. The study
highlighted that the key factors impacting yields arepest and disease pressure, water limitations, and suboptimal nutrient application rates (estimated at 40-90%
of recommended rates in Southeast Asia).
These constraints are crucial for RSPO to understandin order to refine our standards and guidance to boost
productivity. If we can guide our members to produce
more oil from the same amount of land, this will
magnify impacts, especially for smaller plantations.
Plantations and smallholder farmers could benefit fromadditional prosperity, while simultaneously easingpressure on land expansion at a global scale to meetgrowing demand.

4
Certified Volume is the aggregated projected volume of production based on the capacity of each mill, taking into consideration maturity of the oilpalms, extent of production area, and the oil extraction rate.
5
Woittiez, L., van Wijk, M., Slingerland, M., van Noordwijk, M., & Giller, K. (2017). Yield gaps in oil palm: A quantitative review of contributing factors.
European Journal Of Agronomy, 83, 57-77. doi: 10.1016/j.eja.2016.11.002.
6
RSPO yields calculated from RSPO Assurance data. Global yield calculated from RSPO estimates for total palm oil production (Source: USDA) and total
palm oil hectarage (using national sources, industry bodies or available research studies).

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65

Jurisdictional approach to certification
The conventional approach to certification involves
individual entities being audited for compliance witha sustainability standard. Jurisdictional Approach(JA) works on a wider landscape level, involving all
key stakeholders within a government jurisdiction. In
2015, RSPO made a JA commitment at the 13th RSPO
General Assembly, recognising that the involvementof governments could provide elements of legislation,
strategy and leadership that conventional certificationis unable to deliver. The JA Working Group wasestablished in March 2018, tasked with developinga jurisdiction-level certification system document insync with current RSPO certification. RSPO has taken a
stepwise approach to JA, consisting of four steps: pilot,

0-50

Trademark Licences
51-100101-500

501-1,000

application, implementation and certification. Thereare currently three RSPO-supported JA pilots:● Seruyan in Central Kalimantan, Indonesia at a
district level● Sabah in Malaysia at a state level● Ecuador at a country level, starting first at the
Amazonian region.
All three pilots are in the process of advancing to theapplication step. RSPO will provide more informationon these JA pilots as they develop. As the JA pilots
move into implementation and certification, we willdevelop a separate Impact Indicator to specificallyexamine the outputs and outcomes of jurisdictionallevel certification.

Traceability and Productivity
To ensure the credibility of sustainability claims
throughout the supply chain, all RSPO members
downstream beyond mills that take legal ownershipand physically handle RSPO certified products need
to be supply chain certified. This is possible throughthe RSPO Supply Chain Certification (SCC) Standard,
which ensures that what has been produced assustainable is then traded, distributed, refined orprocessed as sustainable, and presented to consumers
as trustworthy.
The SCC is based on a quality management system, inwhich production identification and control are key
objectives. Four supply chain models apply: Identity
Preserved, Segregated (SG) and Mass Balance forphysical products, and RSPO Credits. SG certificationrefers to products sourced from different IP mills, while
IP comes from a single IP certified mill. MB is a mixtureof certified and conventional mill sources. RSPO Credits
are a virtual trading scheme where downstream RSPO
members can purchase credits from certified mills
without physically sourcing certified products. RSPO
Credits are generally seen as a “stepping stone” option,or in regions where the infrastructure for handling
physical certified volumes is not fully developed, or
to cover instances where specific grades or types ofcertified products are unavailable.

As the market for RSPO certified products matures andexpands, the number of SCC certified facilities has seen
significant growth, rising from 612 sites in 2013 to 6,086
sites in 2021 (Figure 4). Most SCC sites are located in
North America and Europe (Figure 5), but there has also
been a certification acceleration in key manufacturinghubs such as China, Japan, Thailand, Malaysia,
Indonesia, Poland and Hungary in recent years.
For consumers, the most visible sign of certificationis the RSPO Trademark, an ecolabel that signals theuse of RSPO certified palm oil in a product. Launchedin 2011, the RSPO Trademark has grown from 181
licences covering 27 countries in 2013 to 1,676 licences
covering over 100 countries and territories in 2021
(Figure 4), with usage for general communications
claims and on-pack labelling. As with SCC certification,use of the Trademark is mainly concentrated in Europe
and North America, but is increasing in other regions,particularly Asia. However, less than a third of RSPO
downstream members are using or have expressedinterest to use the Trademark as per the ACOP 2021
reporting cycle. Common reasons cited for non-usage
include a lack of consumer demand and a lack ofconsumer awareness.

SCC Facilities

Trademark Licences

7000

Figure 5: Global distribution of RSPO SCC certified facilities

Gaining visibility Recognition for the RSPO Trademark
In 2022, Dutch independent information organisation
Milieu Centraal published its Keurmerkwijzer,
a quality guide that provides information onsustainability labels in the Netherlands. Twelve
food ecolabels were named by Milieu Centraal
as indicators for Dutch consumers to shop moresustainably. The RSPO Trademark was one of them.
Assessment for the Keurmerkwijzer was based on
three criteria, that the ecolabel is:● Ambitious (strict), going much further thanthe usual practice in its industry in aspects ofenvironment, people, work, or animal welfare.
● Transparent, with requirements easy to findpublicly and easily understood to ensure consumers
know what it stands for.
● Reliable through inspection, with sustainability
claims seen as credible through independentcertification or being ISEAL Code Compliant.

Certified Sustainable Palm Oil (CSPO) has beenused in a product, the RSPO Trademark is seen as
the leading indication of sustainable palm oil use
in the Netherlands. The RSPO Trademark can befound on products available in the Dutch market
manufactured by at least 30 RSPO members (basedon ACOP 2021 reporting), from vegetable spreads
to chocolate, frozen chicken wings to the country’s
iconic stroopwafel. All RSPO members can apply for alicence to use the RSPO Trademark.

Assessed ecolabels were ranked on a scale of 0
(Very Low) to 5 (Very High) for each criteria. All
ecolabels in the Top 12 must have scored at least
4 or 5 in each criteria to qualify as a topkeurmerk(top quality mark). Milieu Centraal notes that a
topkeurmerk sets the strictest requirements within
its product category at the time of assessment andby buying such products, consumers contributeto a more sustainable food chain. As a signal that

6000
5000
4000
3000
2000
1000
0

2013

2017

2020

2021

Figure 4: Evolution of RSPO SCC certified facilities and Trademark licences

66

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TRANSFORMING
MARKETSRSPO creates a marketplace ecosystem for sustainable palm oil to thrive
worldwide. We set credible standards, convene members from acrossthe value chain and lead the dialogue on sustainability issues. Our role
is to facilitate and monitor that market, and to direct our outreach anddevelopment strategies towards making sustainable palm oil the norm.
We have achieved much already. Nearly 20% of the world’s palm oil is
now produced under RSPO standards, and certified consumption has
accelerated as well. However, due to various velocities across different
regions, supply and consumption may be misaligned. While RSPO is notable to directly intervene in markets, it is our role to energise, encourage
and enlarge our membership – especially in key consuming regions – toensure that the market for RSPO certified grown, refined and processed
oil palm products remains balanced, relevant and transformative.

Developing markets,
Building recognition
In September 2021, the largest supermarket chain in Indonesia, Super
Indo, launched its eco-labelled Palm Cooking Oil 365. This product ismanufactured from RSPO certified palm oil, refined in Indonesia, andcarries the RSPO Trademark. In a product category that is highly pricesensitive and in a market where RSPO downstream penetration is still in
its infancy, developments such as this show that there is room to embracesustainability everywhere. A 2020 survey conducted by MarkPlus withWWF Indonesia1 revealed that as many as 82% of Indonesian consumers
expressed a willingness to switch their daily palm oil-based products withsustainable palm oil if an option is available. The launch follows three yearsof engagement with WWF Indonesia and was promoted with the theme“A New Way of Cooking: 365 Days with Sustainable Palm Oil”, entreating
consumers to use certified palm oil all year round.

Credit: PT Lion Super Indo1

68

https://www.wwf-scp.org/sustainable-cooking-oil-indonesia/

Impact Report 2022

Credit: RSPO, Jonathan Perugia

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69

Our continued growth is encouraging, but the actual
scope for CSPO supply is greater. Accounting for RSPO
members with currently uncertified plantations, aswell as new oil palm grower members, the CSPO
production ceiling within our current membershipis actually much higher at 31.4 million MT or 41% of
global production (Figure 1). This potential supply
also shows the full extent of the current RSPO grower
membership base; for example, our Latin American

CERTIFIED SUPPLYPEOPLEPROSPERITYPLANET

In 2021, actual production of Certified Sustainable
Palm Oil (CSPO) reached a new peak of 14.7 million
metric tonnes (MT). This represents a 6.3% yearon-year growth from 2020, or an annual increaseof nearly 900,000 MT. Against an estimated global
production of 75.9 million MT, the CSPO share of
global palm oil is over 19% (Figure 1). Indonesia andMalaysia remain the largest producers, collectively

accounting for over 80% of CSPO volumes, while wealso note accelerating production in other regions.
With the exception of Malaysia where both total
palm oil and CSPO production declined in 2021 dueto labour shortages, CSPO volumes have increased
in all producing regions. Two landmarks have beenreached: Latin America crossed the 1 million MT markin 2020, and Africa reached 300,000 mt in 2021.
19%

9%

%
61

million MT

Total PO
2009
2013
2017

4
12
16
19

2020

21

2021
2009

2013

2017

2020

2021

Figure 3: Number of countries with P&C certification

20%

18.1

3.37

CSPO

Figure 2: Evolution of global CSPO and total palm oil production

Malaysia%
16

Africa

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

members now represent more than two-thirds oftheir region’s palm oil production in the 12 years since
the first P&C certification in Latin America (Colombia)
was achieved in 2010. As the RSPO’s ability totransform markets is rooted in CSPO production andits supply, we must continue to assist our members
to accelerate certification while maintaining thecredibility of our standards.

million MT

75%

22
%

4.98

38%

19%

Latin America

Indonesia

%
62

43%
CSPO
Countries with P&C certification

Potential CSPO

million MT

4.17

million MT

4

45.3

19%

million MT

Rest of World

0%

7%

30%

2

Non-RSPOCountries with RSPO members operations not yet P&C certified

Figure 1: Global distribution of CSPO, potential CSPO and palm oil production (2021)1

This trend of annual growth in both volume andpercentage of global production is more apparent
when looking at the historical evolution of CSPO supply(Figure 2). In 2009, CSPO actual production was an
estimated 1.2 million MT, or 3% of global production,rising to nearly 7 million MT in 2013, or 12% of global
production. Since 2013, CSPO volumes have more thandoubled to 14.7 million MT, outpacing growth in theoverall industry. Our geographical coverage has also
expanded significantly. Between 2009 and 2021, thenumber of countries with P&C certification rose from4 to 21 (Figure 3) with key expansions in Latin Americaand Africa. This trend continues to expand, with thefirst plantations in Peru, São Tomé and Príncipe, andthe Democratic Republic of Congo receiving P&C
certification in 2022.

Savonnerie Tropicale
RSPO Membership ID: 1-0149-14-000-00
Country: Madagascar
Member since: 2014
P&C certified since: 2015 (Identity Preserved)
The only RSPO P&C certified oil palm grower in
East Africa2. Savonnerie Tropicale is a family-run,
100% Malagasy oil palm operation founded in 1967,
producing palm oil and finished soap/personal careproducts. The entire concession of 2,784 ha (including
1,180 ha of production and 1,234 ha of HCV/
conservation areas) has been RSPO certified since2015 under the IP model, with a supply base that
includes five smallholder cooperatives. Savonnerie
Tropicale’s palm oil and palm products are sold in
Madagascar, and also exported to Europe (entirely to
Switzerland since 2009).

Mong Reththy Investment
Cambodia Oil Palm Co. Ltd(MRICOP)RSPO Membership ID: 1-0109-11-000-00
Country: Cambodia
Member since: 2011
P&C certified since: 2012 (Identity Preserved)
The largest oil palm grower in Cambodia, with two
mills and a 20,000 ha concession, Mong Reththy
has been RSPO certified since 2012. Its approachto marketing its palm oil has evolved, first targeting
exports to Southeast Asia before switching focus to
supplying IP volumes to Europe. ACOP submissions
show that limited market access resulted in only
about a third of Mong Reththy’s CSPO being soldas RSPO volumes, the remainder was downgradedto conventional. In 2020, it pivoted to RSPO Credits
with success. In 2021, 100% of Mong Reththy CSPO
was sold as RSPO Credits, almost entirely to buyers in
Europe, North America and Japan.

CSPO actual production extrapolated from available audit data of certified mills and member Annual Communication of Progress (ACOP) reports. Total
palm oil production estimated from USDA Oilseeds: World Market and Trade reports.
2
Hillside Agriculture Limited (1-0295-20-000-00) in Uganda is an RSPO oil palm grower member but has not yet received P&C certification. Membershipis currently suspended due to non-submission of ACOP.
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Growth in certified consumption is reassuring, butchallenges remain. Through the ability and will of ourmembers and other stakeholders, RSPO has already

CERTIFIEDCONSUMPTIONPEOPLEPROSPERITY

Europe (total palm oil)
Europe (excluding biofuels)
CSPO Uptake- 2021

1% 3%

5% 7%8%2%

7%6%transformed the market for sustainable palm oil.
Moving ahead, we must continue to do so, working
together towards our common vision.

North America
Malaysia

14%

Indonesia

China

India

AfricaLatin America

Rest of the World

49%

82%

87%

PLANETAs certified sustainable palm oil (CSPO) travels
downstream along the supply chain, it is refined andprocessed into dozens of fractions and hundreds ofderivatives, each with slight differences in market
dynamics. This can make it challenging to match
supply and consumption, as strong demand in
one product (e.g. liquid fats or olein) may not bematched in another (e.g. fat solids or stearin). Palmoil produced under the RSPO P&C standard canalso be sold downstream under other sustainability
schemes (e.g., International Sustainability andCarbon Certification, ISCC) by RSPO members holding
multiple certifications.
Of the 14.7 million metric tonnes of CSPO produced in
2021, approximately 61% was sold by RSPO certified
mills as RSPO physical material [under the Identity
Preserved (IP), Segregated (SG) and Mass Balance (MB)supply chain models] or as RSPO Credits (Figure 1). A
further 19% was reported as being sold under othersustainability schemes, for a total of 80% of CSPO soldby mills under sustainable certification. The remaining
20% is downgraded to conventional palm oil. The
overall RSPO sales as a percentage of CSPO supply has
improved considerably, from 29% in 2009 and 55% in
2020. Further downstream beyond refining, supply
chain inefficiencies are estimated to reduce the RSPO
share to 58%, or 8.53 million MT.
The regular surplus in CSPO supply is a recognised
issue that RSPO is working on with its members
through initiatives such as the Shared Responsibility
framework (see Shared Responsibility, pg 74) andincreasing membership in key consuming regions.
Market dynamics can be shifted, as they have been
before. The rapid market adoption of CSPO saw RSPO
Credits and physical volumes go from 1% of estimatedglobal consumption in 2009 to 12% in 2021 (Figure2). As traceability expectations evolved, CSPO moved
from being predominantly Credits (71% of CSPO
volumes in 2009) to predominantly physical certified
volumes. The entrenched positions and requirementsof RSPO members in Europe and North America have
driven this shift, where regional CSPO uptake now
exceeds 80% (Figure 3). Encouraging uptake growth isalso being reported in key markets like China, Malaysia
and India, as we expand our global outreach.

RSPO Physical
CSPO

RSPO
Credits

Other
SchemesConventional

100%

CSPO Uptake- 2020
0%

90%

10%

41%

20%

30%

81%

40%

50%

60%

70%

80%

90%

Figure 3: CSPO Uptake by key countries and regions

80%
70%
60%

Market Dynamics in CSPKO and CSPKE

50%
40%
30%
20%
10%
0%

CSPO
Production

CSPO Sales(from Mill)CSPO
Refining/
Processing

CSPO
Consumption

Figure 1: CSPO Supply/Consumption flow through the supply chain1

Total global
40.1
palm oilmillionconsumption
mt

56.4
millionmt

62.9
millionmt

71.8
millionmt

While there is a general surplus of supply in CSPO,
market fundamentals are markedly different in thetwo related palm (seed-based) products certified by
RSPO: Certified Sustainable Palm Kernel Oil (CSPKO)
and Certified Sustainable Palm Kernel Expeller (CSPKE),
used generally for animal feed.
In CSPKO, supply and consumption are estimated to bealmost equal at 13% of the global market3. Since 2020,
RSPO members have been reporting that the tightness
in CSPKO has become disruptive, due to barriers inconverting Certified Sustainable Palm Kernel (CSPK)
from mills into CSPKO by certified kernel crushers,

as well as a reduction in the availability of CSPKO
Credits. RSPO is working together with its members
on solutions to address this issue over the short-,
medium- and long-term.
In CSPKE, only a tiny amount of supply is sold as
RSPO (1.2%) with the remaining volumes sold as
conventional by-product. Consumption is almost
entirely from Europe, mainly for large-scale animal
feed. As the three markets are interconnected,
developing a value proposition for CSPKE to increase
potential consumption (simultaneously with efforts toaccelerate CSPO) could assist in rebalancing CSPKO.

73.7
million
mt

100%

RSPO has an important mission: making sustainable palm oil the norm.
To make this happen, true willingness and collaboration amongst
supply chain actors is crucial. The Market Development Standing
Committee (MDSC) is tasked to align demand, commitment, and uptake
worldwide. We are looking at regional market development includingtrue engagement of companies and other stakeholders. Everyone has arole to play and as such the principles of shared responsibility have to
become commonplace.

90%
80%
70%
60%
50%
40%

Eddy Esselink
Co-Chair of the RSPO Market Development Standing Committee (MDSC)
representing the Netherlands Oils and Fats Organisation (MVO)

30%
20%
10%
0%

2009
CSPO

2013
Total PO

2017

2020

2021

RSPO Credits as % of CSPO

Figure 2: Evolution of global CSPO and total palm oil consumption,
share of RSPO Credits2
CSPO consumption extrapolated from RSPO PalmTrace traceability data and member’s Annual Communication of Progress (ACOP) reports. CSPO
consumption includes volumes used by Consumer Goods Manufacturers, Retailers and Processors operating in animal feed, biofuels and power
generation.
2‘Total palm oil consumption estimated from USDA Oilseeds: World Market and Trade reports.
3
Total global palm kernel oil production and consumption of 8.9 million MT and 8.6 million MT, respectively, in 2021. Source: USDA Oilseeds: World
Market and Trade reports.
1

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Transparency
and Legality

SHAREDRESPONSIBILITY

SocialEnvironmental

Resourcing

Uptake targets

Processors and Traders
Consumer Goods Manufacturer
Retailers
Banks and InvestorseNGOs

PROSPERITY

Shared Responsibility (SR) is a framework adopted
by RSPO members to ‘make sustainable palm oil
the norm’. It is an innovative way for members todemonstrate leadership in each of their sectors,
while also driving uptake. Within the framework, allmembers collaborate and commit their contribution
with agreed accountability for results.
SR Requirements and Implementation came into
effect October 2019 and applies to non-grower
members, covering the thematic areas of Transparency& Legality, Social, Environmental, and Uptake &Resourcing (Figure 2). Though a shared obligation,
specific requirements may vary from one member
category to the next, reflecting their unique roles.
Members report SR commitments through selfreporting during Annual Communication of Progress(ACOP) cycles and in their MyRSPO profile on the RSPO
website.
In March 2021, the RSPO Secretariat’s SR Unit rolled
out a new reporting mechanism for SR requirements.
Within four months, 11% of members had reported
commitments. After a year of socialisation, reportinghas nearly doubled to 20%. These public commitments
are made either by providing evidence1 or adeclaration of support, available on the member’s
public RSPO profile.
In order to drive demand, the SR volume requirement
for supply chain members includes annual uptake
targets expressed in percentage points. ‘Matchingsupply and demand’ is one of our key strategies andthis has been a priority given a general market surplusof CSPO (see Certified Consumption, pg 72). SR uptake
targets for 2021 were a 2% increase for Processors andTraders (P&T) and a 12% increase for Consumer Goods
Manufacturers (CGM) and Retailers. Analysis of ACOP
2021 data shows a broad range of results (Figure 1).
In 2021, Retailers continued to perform well, with
72% increasing their CSPO uptake by 12 percentage
points or more. CGMs showed broadly positive
results, with a majority (59% in both 2020 and 2021)
meeting SR targets, while P&Ts were mixed with 41%
meeting targets in 2021. However, we do note that asintermediate nodes in the supply chain, the ability of
P&Ts to meet targets is dependent on their CGM andRetailer clients, which can vary by scale and region.

1

74

sNGOs

PLANET

Figure 2: The RSPO Shared Responsibility thematic areas and applicability

800
700

As we are at the start of this transformative journey toencourage all RSPO members to be leaders of change,
we will continue to work on improving the credibility

600

Number of members

PEOPLEof SR reporting and its implementation mechanisms.
Sustainability is a shared responsibility, and making it
the norm in palm oil can only be achieved together.

500
400

Testimonials from the
Shared Responsibility Working Group

300
200
100
0

P&T
2020

P&T
2021

CGM
2020

CGM
2021

RT
2020

RT
2021

Shared Responsibility Uptake Targets
Year

Target for P&T

Target for CGM and RT

2020

2%

15%

2021

2%

12%

Uptake Target Performance Category
Performance category

Definition

Target met

Member met the annual uptake target OR
Member increased CSPO uptake to 100%

Did not meet target

Member did not meet the annual
uptake target>95% uptake

Member with >95% CSPO uptake but did
not meet uptake target

Did not submit ACOP

Uptake performance is unknown as
member did not report ACOP

Figure 1: Shared Responsibility CSPO uptake target performance(2021 vs 2020)

We also note that while the percentage of members
meeting targets seems stable, the actual number of
those members has grown, contributing to a 914,000
MT increase in CSPO consumption for 2021, in the
midst of a global pandemic. We will be reaching out
to members that did not meet targets to engage, andunderstand their situation and issues.

Shared Responsibility plays a key role in driving environmental
and social standards, and the uptake of certified products.
RSPO expects high standards of its grower members in meeting
the P&C and we should expect similar commitments fromother RSPO members to ensure equity. Transforming theindustry requires all members to contribute their fair sharethrough creation of demand from end users, and supply fromgrowers, millers and processors, thus creating a virtuous cycle
towards the RSPO vision of making sustainable palm the norm.
Girish Deshpande
Co-Chair of the SRWG representing The Procter and Gamble Company

With rates of tropical deforestation, biodiversity loss and GHG
emissions continuing to rise, RSPO members across the supply
chain need to act fast to set, strengthen and deliver on theircommitments towards a sustainable palm oil industry. WWF
urgently calls on all RSPO members to improve awareness of
Shared Responsibility requirements and targets, ensure accurate
reporting of progress, and work collectively to increase theproduction and sourcing of 100% RSPO-certified palm oil.
Kamal Prakash Seth
Co-Chair of the SRWG representing WWF

For example, uploading a public labour policy to meet the RSPO SR requirement on Labour and Labour Rights.

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APPENDIX 1 MAPPING RSPOIMPACTS AND
UN SDGSIn creating the new RSPO Impact Framework, we have mapped ouravailable metrics and data against the 17 UN SDG goals, 169 targets and248 indicators. This analysis has allowed us to refine our linkages to theSDGs, improve our focus and report on where we are making direct andindirect contributions to SDG target indicators, rather than use the SDG
goals identified in the previous Impact Reports.
The resulting mapping shows how each one of the SDG contributing
targets and indicators is associated with the RSPO Impact Themes. As partof the mapping, we assessed what indicators were important to measure
either in terms of the risk of not doing so, or the opportunity it presented
for RSPO as an extra measure, or for consideration beyond what isdelivered by compliance with P&C 2018 requirements.
This mapping considered three levels of linkages: Level 1 - where RSPOcan show a direct contribution with existing data sources; Level 2 - where
RSPO could make a contribution but where more data or research support
is needed, and Level 3 - SDG indicators that may be important for RSPO
to contribute towards but further discussion is needed before they are
considered for inclusion within our standards, systems or processes.
From the initial mapping, we have identified 21 Level 1, 38 Level 2 and7 Level 3 linkages between our RSPO Impact Themes and the SDGs,
for a total of 66 linkages. A summary representation of the mapping ispresented here. The full indicator mapping linkage list and analysis isavailable in the supplementary data file that accompanies this Impact
Report. We already identified two additional Impact Indicators that could
be developed, on the RSPO Grievance System and on RSPO itself as anorganisation for sustainability leadership. It should be noted that thismapping is intended to be evolutionary, with linkage levels adjusting as
RSPO standards, systems and processes evolve.

Credit: SEnSOR/Rob Colgan

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TARGETS

INDICATORRSPO LINKAGE LEVEL
1

Global Indicator
framework for
the Sustainable
Development Goals
and targets ofthe 2030 Agenda
for Sustainable
Development
Sustainable
Development Goal
indicators should
be disaggregated,
where relevant, byincome, sex, age, race,
ethnicity, migratory
status, disability
and geographic
location, or othercharacteristics, inaccordance with
the Fundamental
Principles of Official
Statistics.

Legend for RSPO
Linkage Level
1 = Direct contribution
with current or indevelopment data
sources
2 = Direct contribution(or input source)
without current orin-development data
sources, indirectcontribution withadapted external
data sources, and/or requires researchand evidence tosubstantiate
3 = Important indirect
linkages that could beconsidered for future
inclusion within RSPO

1.1 Reduce extreme poverty
1.2 Reduce poverty by half
1.4 Equal rights and equal access
1.5 Climate disaster impact on the poor
2.1 End hunger
2.3 Double agricultural productivity
2.4 Ensure sustainable food production
3.8 Universal health coverage
3.9 Death/illness from chemicals or pollution
4.3 Equal access to education and training
4.5 Eliminate gender disparities
5.1 No discrimination
5.2 No violence
5.3 Equal opportunities
5.a Women access to resources
5.b Empowerment through technology
6.3 Improve water quality
6.4 Increase water eﬃciency
6.6 Protect and restore water ecosystems
7.1 Universal access to energy
7.2 Increase renewables
7.b Expand sustainable energy
8.1. Sustained economic growth
8.3 Development-oriented policies
8.4 Global resource eﬃciency
8.5 Full and productive employment
8.7 Forced Labour
8.8 Labour rights and safe work
9.1 Develop sustainable infrasturcture
9.3 Small-scale industry access to ﬁnance
9.4 Upgrade to sustainable industries
10.2 Empower equality and inclusion
10.3 Equal opportunities
10.7 Responsible migration and mobility
11.4 Safeguard and protect cultural and natural heritage
12.1 Sustainable consumption and production
12.2 Sustainable use of natural resources
12.4 Waste management
12.5 Reduce waste generation
12.6 Sustainability reporting
12.7 Sustainable public procurement
12.a Technological support
13.1 Adapt to climate hazards
13.2 Integrate climate change measures
15.1 Conserve and restore ecosystems
15.2 Sustainable mangement of forests
15.2 Combat land degradation
15.5 Protect threatened species
15.8 Control and eradicate alien species
15.c Supporting communities to combat poaching
16.1 Reduce violence
16.3 Rule of law and justice for all
16.7 Inclusive and participatory decision-making
16.8 Broaden and strenghten developing country participation
16.b Promote and enforce non-discrimination
17.8 Technology, science and innovation
17.16 Global Partnership for Sustainable Development

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3

RSPO IMPACT THEME
Respecting
Human Rights

Including
Smallholders

Safeguarding
NaturePreventing
Fire

Limiting
Climate Change

RSPO IMPACT PILLAR
Advancing
Certiﬁcation

Transforming
Markets

RSPO
GovernancePeoplePlanetProsperity

1.1.1 Population under international poverty line
1.2.1 Population under national poverty line
1.2.2 Population living in poverty
1.4.1 Access to basic services
1.4.2 Secure rights to land
1.5.2 Economic loss from disasters
2.1.1 Undernourishment
2.3.1 Agricultural production volume
2.3.2 Smallholder farmer income
2.4.1 Sustainable agricultura area
3.8.1 Essential health services
3.9.3 Unintentional mortality poisoning
4.3.1 Education/Training participation
4.5.1 Education/Training gender parity
5.1.1 Monitoring discrimination
5.2.2 Gender violence
5.5.2 Women empowerment
5.a.1 Secure ownership and land rights
5.b.1 Access to mobile telephone
6.3.1 Safe treatment of wastewater
6.4.1 Water eﬃciency
6.4.2 Water stress6.6.1 Water ecosystems over time
7.1.1 Population with access to electricity
7.2.1 Renewable energy share
7.b.1 Installed renewable energy capacity
8.1.1 Real GDP per capita growth
8.3.1 Informal employment
8.4.1 Global resource material footprint
8.4.2 Domestic resource material footprint
8.5.1 Average hourly earnings
8.7.1 Child Labour
8.8.1 Occupational injuries
8.8.2 Compliance with labour rights
9.1.1 Rural access to roads
9.3.1 Proportion of ﬁnancing
9.4.1 Carbon Dioxide emissions per unit
10.2.1 People below 50% median income
10.3.1 Discrimination & harassment
10.7.1 Recruitment costs
11.4.1 Spend on preservation, protection and conservation
12.1.1 Shift to sustainable practices
12.2.1 Global material footprint
12.2.2 Domestic material footprint
12.4.2 (a) Hazardous waste treatment
12.5.1 Recycling rates
12.6.1 Publication of sustainability reports
12.7.1 Degree of sustainable policies
12.a.1 Installed renewable energy capacity
13.1.1 Deaths from climate disasters
13.2.2 Total GHG emissions per year
15.1.1 Forest area coverage
15.1.2 Protected ecosystems
15.2.1 Progress on sustainable management
15.3.1 Degraded land area
15.5.1 Red List Index
15.8.1 Action on invasive alien species
15.c.1 Poached or illicitly traﬃcked wildlife
16.1.3 Population subject to violence
16.3.1 Victimisation reporting
16.3.3 Access to dispute resolution mechanisms
16.7.2 Inclusive and responsive decision-making
16.8.1 Proportional voting rights
16.b.1 Discrimination and harassment
17.8.1 Use of internet
17.16.1 Multi-stakeholder development progress

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APPENDIX 2 BASE DATA AND GLOSSARY
With the introduction of the new RSPO Impact
Framework in Impact Report 2021, some data on
the outputs and outcomes of RSPO standards andsystems previously reported in the main Impact
Report have been excluded. We have moved theassociated datasets into this Appendix for reference
and continuity, as progress in these areas of RSPO
membership, certification coverage, efficiency of the
RSPO grievance system and trademark usage are also
indicative of RSPO’s overall impact.

Unless otherwise stated, all data presented here isrepresentative of the calendar year (1 January to 31
December). Only data from the three most recent years(2019, 2019, 2021) is shown in this section. Expanded
historical data is available in the supplementary data filethat accompanies this Impact Report.

Membership
BREAKDOWN

2021

2020

2021

5,233

4,991

4,577

United States

622

610

540

Germany

486

487

477

United Kingdom

465

455

452

Japan

262

229

177

Italy

236

225

216

Netherlands

221

222

233

China

205

169

129

179

184

187

Australia

158

160

147

Belgium

157

160

161

Malaysia

157

155

145

Spain

155

157

164

Indonesia

138

126

106

Thailand

127

97

88

Others

1,665

1,555

1,355

Ordinary

2,022

1,931

1,840

3,130

2,948

2,632

108

112

105

UNIT

Total

By Country

By
Membership
Type

Number of Members

FranceAssociate

Number of Members

Number of Members

Affiliate

Note to data:● Membership as of 31 December for each respective year.

Credit: SEnSOR/Rob Colgan

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Certified Hectarage, Production, Sales and Uptake
BREAKDOWNASPECT

2021

2020

2021

3,353,641

3,260,356

3,051,930

4,564,086

4,434,670

4,160,924

301,020

250,304

230,195*

18,883,353

17,206,790

15,192,356

4,222,323

3,845,036

3,383,788

14,731,725

13,925,222

12,989,686

49%

49%

52%

% MB of CSPO

51%

51%

48%

CSPO Sales through IP,SG,MB

7,108,255

6,153,025

5,525,660

CSPO through Book and Claim(RSPO Credits)

1,910,184

1,787,703

1,293,807

9,018,439

7,940,728

6,819,467

2,730,183

3,211,011

3,335,493

61%

57%

52%

UNIT

Production Area
Area

ha

Certified Area
HCV Area
CSPO

Annual Certified
VolumeMT

CSPK
Total CSPO

Estimated
CSPO Actual
Production% SG/IP (+ISH) of CSPOCSPO Sales

MT

Total CSPO sold as RSPO
(Physical and Credits)MT

Estimated sales throughother Schemes
CSPO
UptakeCountries with P&C Certification

Total CSPO sold as RSPO/Estimated
CSPO Actual Production%

Area and Annual Certified Volume as of 31 December for each respective year, covering data from member mills certified within the 12months to 31 December.
Annual Certified Volume is the projected volume based on the capacity of the mill, maturity of the oil palms and production area, and the oil
extraction rate. The Annual Certified Volume is determined and audited in the annual audit process.
Data for Estimated CSPO Actual Production and CSPO Sales is extrapolated from member Annual Communication of Progress (ACOP) reports
and available certification/audit data of certified mills recorded in the annual audit process.
Actual Production is the physical volume generated by mills. Monitoring and assessment of certified mills shows that the Actual Production
is approximately 20% lower than the Certified Volume on average. Certified Volume is observed to be generally overestimated due toagronomic/operational issues, climate conditions, force majeure, etc.
All data is inclusive of scheme smallholders certified as part of a mill’s supply base and independent smallholders certified under RSPO
Independent Smallholder Standard.
HCV figure marked with an asterisk (*) excludes set-aside conservation areas.
RSPO also reports estimated volumes sold through 'other schemes' for RSPO mills that hold multiple certifications through other palm oilsustainability schemes (eg. ISCC).

Certified Hectarage, Production, Sales and Uptake
RSPO
STANDARDTOTAL
CERTIFIEDAREA (HA)TOTAL
PRODUCTION
AREA (HA)TOTAL FFBPRODUCED(MT)RSPO PRINCIPLES &CRITERIA (P&C) - MILLSAND SUPPLY BASE(S)4,500,315

3,290,778

83,326,287

RSPO INDEPENDENTSMALLHOLDER STANDARD(RISS) - INDEPENDENTSMALLHOLDERS (ISH)
GROUP(S)63,771

62,863

1,174,551

CSPK
CSPO
CERTIFIEDCERTIFIED
VOLUME (MT) VOLUME (MT)18,753,593

129,760

4,222,3230Note to data:● All Certification data as of 31 December 2021 from available certification/audit data of certified mills, covering member mills certified
within the past 12 months.

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RSPO
STANDARDTOTAL
CERTIFIEDAREA (HA)TOTAL
PRODUCTION
AREA (HA)TOTAL FFBPRODUCED(MT)CSPO
CERTIFIED
VOLUME (MT)CSPK
CERTIFIED
VOLUME (MT)BrazilCambodia
Cameroon
Colombia
Costa Rica
Cote D'ivoire
Ecuador
Gabon
Ghana
GuatemalaHonduras
Indonesia
Madagascar
Malaysia
MexicoNigeria
Papua New Guinea
Sierra Leone
Solomon Islands
Sri Lanka
Thailand

122,634
20,2183,993
130,343
48,632
6,069
22,787
144,255
26,70599,384
27,6632,307,057
2,234
1,260,166
17,71236,350
198,470
898
9,738
1,977
13,02949,193
16,464958
94,93444,758
1,999
12,96755,802
18,781
74,65026,1301,768,592
1,087
922,785
11,476
22,843
144,959
698
7,509
1,955
12,237775,246
283,220
14,604
1,975,720
839,530
40,176
158,789
443,122
277,881
1,838,303
346,528
49,545,759
7,650
22,589,826
156,817
254,700
3,305,024
6,925
159,41035,44327,1614

157,562
55,9403,160
404,948
160,819
9,040
23,712
106,349
59,130435,751
72,11911,375,189825
4,975,080
35,01651,085724,261
1,390
38,0108,435
55,77231,512
14,160682
79,20933,5981,647
8,181
19,94013,60378,28017,821
2,537,478
377
1,162,115
9,328
13,112
176,641
416
9,086
804
14,334Note to data:● All figures exclude independent smallholders groups certified under the RSPO Independent Smallholder Standard (RISS), but include
outgrower and scheme smallholders certified as part of a mill’s supply base. All figures as of 31 December 2021.

New Planting Procedure

The RSPO New Planting Procedure (NPP) comprises a set of assessments and verification activities to be conducted by growers andCertification Bodies (CBs) prior to any new oil palm development, to provide guidance on responsible planting. The intention is to ensurethat new oil palm development by members complies with the new planting criteria in the RSPO standards and does not negatively impact
primary forest, HCV areas, HCS forests, fragile and marginal soils, or local people’s land.

COUNTRY
BrazilCambodia
Gabon
Ghana
GuatemalaIndonesia
Liberia
Malaysia
MexicoNigeria
Papua New Guinea
Sierra Leone
Solomon Islands
Togo

UNIT

2021

14,159

2020

2019

461
27,6901,388
407
14,719

ha
1,700

200

2010-2018
7,980
10,719163,889
2,240
2,917
1,120,779
146,955
6,877
1,019
22,39847,625
10,0002,677
4,144
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Remediation and Compensation Procedure (RaCP)The Remediation and Compensation Procedure (RaCP) was established to address land clearance and plantation development undertaken
since November 2005 (ie. the release of the first RSPO Principles & Criteria standard) without prior HCV assessment. The procedure requires
growers to disclose any new land development that took place without conducting HCV assessment, to calculate environmental liabilities
through a Land Use Change Analysis (LUCA), and to carry out onsite or offsite remediation for the affected sites or remediation with theaffected parties.

COUNTRY
BrazilCameroon
Colombia
Congo
Costa Rica
Côte d’Ivoire
Dominican Republic
Ecuador
Ghana
GuatemalaHonduras
Indonesia
Malaysia
MexicoMyanmarNigeria
PanamaPapua New Guinea
Peru
Philippines
São Tomé and Príncipe
Sierra Leone
Sri Lanka
Thailand

UNITS

ha

NCLC AREAFCL AREA

2021

2020

2019

2021

2020

2019

24,847
5,034
56,025
3,255
338
4,903
773
12,315
6,006
41,96011,282
767,795
90,981
14,258
3,620
5,583
0
4,018
20,5720
1,313
12,885
1,224.9
024,847
5,034
51,415
3,255
338
4,903
773
12,154
6,006
41,96011,282
740,528
72,46914,258
3,620
5,583
4,018
20,5720
1,313
12,885
1,224.9
0

1,014
8,281
45,444
6,647
173
2,165
7,447
14,093
6,103
42,018
10,619601,833
63,217
14,924
2,048
9,864
20,431
1,331
14,289
2,278

1,111
4,445
1,661
71
4
0
0
2,514
183
7,123
279
113,513
11,577
1,494
0
378
0
1,977
7,113
0
452
464.770564.16

1,111
4,445
1,645
71
4
0
0
2,514
183
7,123
279
112,224
11,498
1,494
0
378
1,977
7,113
0
452
465
0
564.16

166
4,351
1,528
3
786
74
2,514
684
7,090
274
49,756
7,833
1,243
8
1,025
2,998
483
236
533

Note to data:● NCLC: Non-Compliant Land Clearance or land clearance without prior HCV assessment since November 2005.
● FCL: Final Conservation Liability calculated based on the NCLC.
● All figures as of 31 December for each respective year.

Grievance

The RSPO Grievance System is an impartial and transparent process providing stakeholders with an avenue to address complaints against
RSPO members. It provides a framework and mechanism for RSPO to handle complaints but is not a replacement for legal requirements andmechanisms that are in place. In 2017, the Complaints and Appeals Procedure (CAP) was adopted, as a procedure for dealing with complaints
arising from a breach of RSPO Key Documents, and appeals against the decision of the Complaints Panel in relation to such Complaints.

BREAKDOWN
Total complaints received (cumulative)
Total complaints closed (cumulative)
Total complaints open at year-end (cumulative)
Complaints managed by year
Complaints closed by year
Percentage of complaints closed each year
Average time for closure of complaints (pre- and post-CAP)
Average time for closure of complaints (post-CAP)

UNITS

2021
165
131
34
46
12
26%
459
273

Number ofComplaints%
Working
days

2020

2019

153
119
34
62
28
45%
470
288

137
95
42
65
23
35%
496
299

Note to data:● Complaints managed/closed by year include cases filed in previous years.

TrademarkThe RSPO Trademark is a globally recognised ecolabel that signals the use of RSPO certified sustainable palm oil. Licences to use the RSPO
Trademark are issued to RSPO members for two purposes: on-pack labeling or general communications.

ASPECT
Total trademark usage

By stakeholder group

By country

BREAKDOWN
Licences
CGM
P&T
SCA
SCGM
Retailers
Growers
Germany
United States
United Kingdom
FranceBelgium
Netherlands
Italy
Malaysia
Spain
Austria
Others

UNITS
Number of licences

Number of licences

Number of licences

2021

2020

2019

1,676
410
337
847
7
13
62
180
167
124
74
60
61
90
64
65
14
809

1,055
327
211
461
5
11
40
144
111
77
51
46
46
52
51
41
13
445

958
346
202
363
2
7
38
152
76
71
63
59
56
53
50
44
26
308

The RSPO Trademark is a globally recognised ecolabel that signals the use of RSPO certified sustainable palm oil. Licences to use the RSPO
Trademark are issued to RSPO members for two purposes: on-pack labeling or general communications.

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GLOSSARY
Affiliate Members
RSPO membership category consisting of organisations
that are not directly involved in the palm oil supply
chain, but have expressed interest in RSPO’s objectives
and activities. Membership extends to academia,
research and development organisations, donors andsponsors. Affiliate members may attend the annual
General Assembly as observers.
Annual Communication of Progress (ACOP)
Reports submitted by RSPO members to gauge theirprogress towards producing, processing, consuming or
supporting 100% RSPO certified sustainable palm oil.
These reports are mandatory for Ordinary and Affiliate
members, and are submitted each year.

Final conservation liability (FCL)
Compensation liabilities incurred by RSPO members
as a result of clearance without prior HCV assessment
since November 2005. FCL is expressed in hectares.

Best Management Practices (BMPs)
Practical guidelines to enhance oil palm management.

Free, Prior and Informed Consent (FPIC)A principle that a community has the right to give or
withhold its consent to proposed projects that may
affect the lands they customarily own, occupy orotherwise use.

Certification Body (CB)
Organisation that provides third party auditing andcertification services related to a product, process or
system, and which can issue a certificate of compliance.

Fresh Fruit Bunch (FFB)
Bunch harvested from the oil palm tree. Each bunch
can weigh from 5 to 50 kilogrammes and can contain
1,500 or more individual fruits.

Certified Sustainable Palm Kernel Expeller (CSPKE)
Palm kernel expeller produced by RSPO Supply Chain
Certified kernel crusher from palm kernels derived
from FFB grown on a plantation that has been
managed and certified in accordance with the RSPO
Principles & Criteria.

Greenhouse gas (GHG)
Term for gases that trap heat within the atmosphere.
The primary greenhouse gases are water vapour,carbon dioxide, methane, nitrous oxide, and ozone.

Certified Sustainable Palm Kernel Oil (CSPKO)
Palm kernel oil produced by RSPO Supply Chain
Certified kernel crusher from palm kernels derived
from FFB grown on a plantation that has been
managed and certified in accordance with the RSPO
Principles & Criteria.
Certified Sustainable Palm Oil (CSPO)
Palm oil that has been grown on a plantation that has
been managed and certified in accordance with the
RSPO Principles & Criteria.
Crude palm oil (CPO)
A type of unrefined vegetable oil obtained from thefruit of the oil palm tree.
Decent Living Wage (DLW)The remuneration received by a worker, for work
performed on regular hours, in a particular placesufficient to afford a decent standard of living for theworker and her or his family.

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Dispute Settlement Facility (DSF)
The Dispute Settlement Facility is a part of the RSPO
Complaints System and offers complainants, RSPO
members, and relevant stakeholders involved in an
active social or environmental related complaint, theopportunity to resolve these matters through mutuallyagreed terms, with the help of DSF Mediation.

Impact Report 2022

Hectares (ha)A unit of measurement equivalent to 10,000 square
metres, or 100m x 100m.
High Conservation Value (HCV)The concept of High Conservation Value Forest (HCVF)
was first developed by the Forest Stewardship Council(FSC) in 1999 as their 9th Principle. The FSC defined
HCVF as forests of outstanding and critical importancedue to its environmental, socio-economic, cultural,
biodiversity and landscape value.
High Carbon Stock (HCS) Forest
Forests that are important to local communities or thathave high carbon or biodiversity values.
High Forest Cover Country (HFCC)
Landscapes having >60% forest cover (based onrecent, trusted REDD+ and national data); <1% oil palm
cover; a deforestation trajectory that is historically low
but increasing or constant; and a known frontier area
for oil palm or where major areas have been allocatedfor development.

High Forest Cover Landscape (HFCL)
Landscapes having >80% forest cover. Landscape as
defined under HCSA Toolkit (Module 5): “The size ofa landscape may be determined by (a) identifying thewatershed or the geographical land unit containing acluster of interacting ecosystems; (b) selecting a unit
size that encompasses the plantation concession anda buffer of the surrounding area (e.g. 50,000 ha or
100,000 ha); or (c) using a radius of 5 km from the areaof interest (for instance, the planned concession).”Hotspot
A small area with a relatively high temperature incomparison to its surroundings.
Human Rights Defenders (HRD)
Individuals, groups and associations who promote
and protect universally recognised human rights
and contribute to the effective elimination of all
forms of violations of human rights and fundamental
freedoms of individuals and peoples. This
includes environmental Human Rights Defenders,
whistleblowers, complainants and community
spokespersons. The definition does not include thoseindividuals who commit or propagate violence.
Identity Preserved (IP)The Identity Preserved supply chain model assures thatRSPO certified palm oil is kept separate from oil thatis not RSPO certified. This oil can be physically traced
back to its plantation of origin.
ISEAL Alliance
Global membership association for credible
sustainability standards, which work together toimprove the impact and effectiveness of current andpotential future members.
Jurisdictional approach (JA)In the context of sustainable palm oil, the jurisdictional
approach involves the certification of palm oil
production at the provincial level, utilising a particularmodel of rural development. The approach facilitatescollaboration between local stakeholders and regional
governments to improve the welfare of small-scale
farmers, curb the use of environmentally destructive
practices such as slash-and-burn clearing, and iron out
supply chain inefficiencies.
Land Use Change Analysis (LUCA)
Assessment determining changes to vegetation
cover and land use over a given timeframe. Must becompleted by RSPO members prior to any conversion
or new planting.

Mass balance (MB)Supply chain model that allows certified claims to betransferred from one oil palm product to another,either through physical blending or administratively
under strictly controlled circumstances.
Metric tonne (MT)A unit of mass equivalent to 1,000 kilogrammes.
New Planting Procedure (NPP)
Provides guidance on how and under what conditions
new oil palm plantings should be carried out.
Oil palm
A species of palm (Elaeis guineensis) and the principal
source of palm oil. It is native to west and southwest
Africa, but is now cultivated in over 26 countries. Ideal
growing conditions occur up to 10 degrees either sideof the equator.
Ordinary members
RSPO membership category consisting of organisations
that have either direct involvement, or have activities
around, the palm oil supply chain. Only ordinary
members are allowed to submit resolutions and vote at
the annual General Assembly.
PalmGHG
A calculator developed by the RSPO Greenhouse Gas
Working Group (2010–2011) and further refined andimproved by the RSPO Emission Reduction Working
Group to estimate and monitor net GHG emissions
from current estate and mill operations, as well as
new plantings.
Palm Kernel Expeller (PKE)
By-product of the Palm Kernel Oil extraction process, asa dried residue commonly used as meal in animal feed
applications. Also known as Palm Kernel Cake.
Palm Kernel Oil (PKO)
Oil extracted from the kernel or core of the palm fruit.
Palm Oil
Edible oil extracted from the fruit of the oil palm.
Palm oil is one of the few highly saturated vegetablefats. It remains semi-solid at room temperature and issuitable for a wide variety of applications. Palm oil is
an ingredient in a large number of products, including
margarine, baked goods, chocolate, ice cream, soaps
and cosmetics. It is also used as fuel for vehicles andpower plants.

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PalmTrace
RSPO’s traceability system for certified oil palm
products. Certified members use PalmTrace to register
their physical sales and processing activities - from milllevel to refineries - under the IP, SG and MB supply
chain models. PalmTrace also supports RSPO’s Book
and Claim model by enabling the trade of RSPO Credits.
Peat
Peat is an accumulation of rotting plant material,
forming in wetlands or peatlands.
Remediation and Compensation Procedure (RaCP)
Procedure whereby RSPO members are required to
remediate and compensate for land clearance without
prior HCV assessment since November 2005.
RSPO Board of Governors (BoG)
RSPO management body comprised of 32 RSPO
members, representing each of the seven RSPO
membership categories and designated by the General
Assembly for two years.
RSPO Complaints and Appeals Procedure (CAP)
RSPO procedure for dealing with complaints arisingfrom a breach of the RSPO Key Documents, andappeals against the decision of the Complaints Panel in
relation to such Complaints.
RSPO Complaints Panel
High-level body that handles complaints against
RSPO members.
RSPO Credits / Book and Claim (B&C)
Model where the supply chain is not monitored forthe presence of sustainable palm oil. Manufacturers
and retailers support the production of RSPO certified
sustainable oil palm products through the purchaseof credits from RSPO certified growers, crushers andindependent smallholders.
RSPO Drainability Assessment (DA) Procedure
The RSPO DA Procedure has been developed to support
growers to assess future subsidence and flood risksof peatlands and adjust their management processes
to reduce subsidence rates and prolong the workable
lifetime of their plantations.
RSPO Principles & Criteria (P&C)
Guidelines on how palm oil companies and growers
should produce palm oil sustainably. It forms the basisof all company assessments for certification and isreviewed every five years.

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Impact Report 2022

RSPO Smallholder Support Fund (RSSF)
A fund established by the RSPO to help small,independent operators secure sustainable palm
oil certification while minimising costs. The RSSF isfunded from 10% of income generated through thetrading of CSPO.
Segregated (SG)The Segregated supply chain model maintains
separation between sustainable palm oil from different
certified sources and ordinary palm oil throughout the
supply chain. The model assures that RSPO certified
oil palm products delivered to the end user come only
from RSPO certified sources.
Set-aside area
Areas set-aside that are not planned to be planted,
such as peatlands, areas of fragile or marginal soils,
steep slopes, etc., excluding HCV areas.
Smallholders
Farmers growing oil palm on a plantation of less than
50 hectares. Smallholders may be scheme (supplying
FFB under a contractual arrangement with a specificpalm oil mill) or independent (supplying FFB to multiple
palm oil mills).
Standing Committees
Committees that oversee RSPO’s overall operations,consisting of members from the BoG and RSPO
members. Four Standing Committees have been
appointed to lead: Standards & Certification, Trade &Traceability, Communications & Claims and Finance.
Supply Chain Associates
RSPO membership category consisting of companies
that procure, use or trade less than 500 MT of CSPO
annually. Supply chain associates may attend theannual General Assembly as observers.
United Nations Sustainable Development Goalds(SDGs)
A set of 17 aspirational global goals to end poverty,
protect the planet and ensure that all people enjoy
peace and prosperity. The goals build on the successesof the Millennium Development Goals, while including
new areas such as climate change, economic inequality,
innovation, sustainable consumption, peace andjustice, among other priorities.